Cities And States With The Most Millionaires And Billionaires

Millionaires.

There are more millionaires in the world than I thought.

While it is still a lofty financial goal to be a millionaire for many, a million dollars isn’t what it used to be.

The number of millionaires in the world totaled 62.5 million in 2021 based on the 2022 Credit Suisse Global Wealth Report. That amounts to 1.2% of the number of adults in the world.

Basically, 1 out of 100 adults is a millionaire around the globe.

The number of global millionaires went up by 85% since 2000.

That is quite a nice growth globally in millionaires over the past 20 or so years.

What about billionaires?

There were 470 billionaires in the world back in 2000.

Now, there are 2,668 billionaires on the 2022 Forbes World’s Billionaires List.

That’s a really solid 5.6x increase over the past two decades.

“A million dollars isn’t cool. You know what’s cool? A billion dollars.” A line said by Sean Parker (the first president of Facebook) to Mark Zuckerberg (CEO of Facebook) in the fictionalized movie “The Social Network” about the founding of Facebook.

I guess a lot of the billionaires took that sentiment to heart.

The United States Leads The World In Millionaires And Billionaires

Leading the charge in the number of millionaires is the United States.

According to Credit Suisse, the United States accounts for 39% of global millionaires with 24.5 million U.S. adults who are millionaires. 1 out of every 10 adults in the United States is a millionaire.

China, the next closest country in the number of millionaires, has 6.2 million accounting for 10% of the global millionaires.

The United States has 4x the number of millionaires as the second ranked country.

To state the obvious, hitting billionaire status is significantly harder.

There are 735 American billionaires accounting for 27.5% of the world’s billionaires.

The collective net worth of American billionaires ($4.7 trillion) makes up 37% of the total net worth of the world’s billionaires ($12.7 trillion). 8 out of the top 10 billionaires are American.

It probably doesn’t come as a surprise to most of you that the richest Americans are certainly doing very well.

After all, the United States of America is known as the land of opportunity.

And the number of millionaires and billionaires back that up.

Opportunities are abundant when there are so many financially successful people in America at the top of the wealth pyramid.

Americans are certainly very rich on a global scale.

Where Do The American Millionaires And Billionaires Live?

Do you wonder where all the very wealthy live in America?

New York City of course.

NYC leads the list of U.S. cities with the most millionaires.

After all, NYC is a global tier-one city.

In the 2021 A.T. Kearney Global Cities Index (the latest one available), New York City ranks number 1.

Do you know who ranked number 1 in 2020? You got it, NYC.

NYC has been ranked number 1 since 2017. It’s nice to see that NYC is still able to retain the top spot through the pandemic.

As a native New Yorker, I happen to agree with the ranking. There is no bias at all here.

Think about all the great things New York City has to offer:

-World-class museums such as the Metropolitan Museum of Arts and the American Museum of Natural History

-Iconic buildings such as the Empire State Building and Chrysler Building

-Centers of culture such as Lincoln Center and Broadway

-Michelin-starred restaurants such as Per Se and Eleven Madison

-World-famous shopping such as at Time Square and Fifth Avenue

-Unbelievable parks and outdoor spaces such as Central Park and The High Line

-Global landmarks such as The Statue of Liberty and Grand Central

The people, culture, and food are immensely diverse in New York City. Is there a wonder why the United Nations decided to place its headquarters in this great city?

All the benefits New York City has to offer attract the financially wealthy.

New York City doesn’t just lead the United States as the city with the most millionaires in 2022, it also leads the world.

New York City’s Millionaires And Billionaires

According to the 2022 Q3 Henley Global Citizens Report, New York City tops the 2022 list of the top 20 cities with the most millionaires.

Just in case you are wondering, here are the top 20 cities:

New York
Tokyo
San Francisco Bay Area
London
Singapore
Los Angeles & Malibu
Chicago
Houston
Beijing
Shanghai
Sydney
Hong Kong
Frankfurt
Toronto
Zurich
Seoul
Melbourne
Dallas & Fort Worth
Geneva
Paris

There are 345,600 high net worth individuals in New York, defined in the report as individuals with investable assets of 1 million dollars.

New York City also leads the list in the number of deca-millionaires (those with investable assets of $10 million+) and centi-millionaires (those with investable assets of $100 million+).

There are 15,470 deca-millionaires living in New York and 737 centi-millionaires.

Which city in the world do you think has the most billionaires?

If you follow the pattern, you will be right.

New York City has the most billionaires calling it home in 2022.

According to Forbes, there are 107 billionaires in New York City, an increase of 8 year-over-year.

The richest person in New York City is Michael Bloomberg with a net worth of $82 billion on the 2022 Forbes Billionaires List.

Billionaires’ Row In New York City

With so many wealthy individuals living in New York City, is there a surprise that NYC has a Billionaires’ Row located in Manhattan?

Billionaires’ Row in New York City is a set of ultra-luxury residential skyscrapers that are located roughly along the southern end of Central Park in Manhattan.

There are 8 ultra-luxury skyscrapers that make up Billionaires’ Row.

The average price of a home that sold on Billionaires’ Row in 2021, according to a study by Serhant LLC, a licensed real estate brokerage firm in New York, is $22.5 million.

The most expensive properties are located at 220 Central Park South, where the average sale price is $37.4 million.

The hedge fund manager, Ken Griffin, set a U.S. home price record with a $238 million purchase of the penthouse at 220 Central Park South back in 2019. That is still the record today.

But records are meant to be broken.

There is currently a penthouse at 217 West 57^th Street, one of the eight ultra-luxury skyscrapers in Billionaires’ Row, on the market for $250,000,000.

If you have a quarter of a billion dollars and are unsure of what to do with that money, take a look at this trophy property.

Central Park Tower Penthouse Floor Plan 1

Central Park Tower Penthouse Floor Plan 2

Central Park Tower Penthouse Floor Plan 3 — Central Park Tower Penthouse Floor Plan

Not All Billionaires Want To Live In Billionaires’ Row

Sufficient to say, it is pricey to live on Billionaires’ Row.

Not all wealthy individuals live there. In fact, not all wealthy individuals in America live in New York City.

Hard to believe right? Who wouldn’t want to live here?

Many billionaires prefer to be surrounded by sun, better weather, or be in a state with no income tax.

The state with the most billionaire is California. Out of the 700+ American billionaires, 25% (186) live in California.

New York State has the 2^nd most American billionaires with 18% (135) of the billionaires in the United States.

Rounding out the top 4 are Florida with 78 billionaires (11%) and Texas with 67 billionaires (9%).

How Do You Meet Millionaires? Go Where They Live.

American billionaires reside across the United States with a high concentration in the top 4 states.

American millionaires are also dispersed throughout the U.S.

Maybe unsurprisingly, the top 4 states with the most millionaire households mirror the top 4 states with the most billionaires.

California tops the list of millionaires as well. Next comes Texas, New York, and then Florida to round out the top 4 states. Illinois is number 5 on the list.

This makes sense.

When you think about the best million dollar paying jobs out there such as in finance, technology, or medicine, those states have plenty.

Not to mention, those states have world class cities which millionaires must find attractive. California has Los Angeles and San Francisco, Texas has Houston, Dallas, and Austin, New York State has New York City, Florida has Miami, and Illinois has Chicago.

Even in New York State, while a large number of NYS millionaires live in New York City, quite a few can be found living in other parts of the state as well.

Based on an analysis of the most recent tax returns made public by the NYS Department of Taxation and Finance, 83% of the state’s $1 million or more a year earners live in one of three regions:

Manhattan with 42% of all the state’s million dollar earners;
Westchester with 20%; and
Long Island with 20%.

Westchester and certain parts of Long Island are suburbs for commuters working in Manhattan.

Therefore, it doesn’t surprise me that so many million dollar earners live in those parts of the state.

After all, as a Manhattanite, I thought about moving to one of those suburbs. I thought through the pros and cons of living a city life or moving to the suburb.

Ultimately, I decided to stay in Manhattan.

New York Is An Expensive Place To Live.

With all the wealth in New York City, it is no wonder the city is such an expensive place to live.

According to Payscale.com, New York City is over twice as expensive to live in when compared to the national average.

Housing cost is the biggest culprit here, far outpacing the national average.

A sampling of the costs of living in New York City:

Median home price: $2,137,777

Median rent: $6,530/month

Energy bill: $174.89/month

Phone bill: $192.44/month

Loaf of bread: $5.03

A gallon of milk: $3.22

Carton of eggs: $2.27

Bunch of bananas: $4.87

Hamburger: $6.88

On the tax front, there is no reprieve for millionaires and billionaires despite the relatively large number of them in NYC.

New York State has 3 additional income tax rates for earners making over $1 million. The income tax rate jumps up roughly 3% once you cross into the million dollar income threshold.

The income tax rate is 9.65% on income earned between $1.08 million to $5 million, 10.3% from $5 million to $25 million, and goes to 10.9% on any amount over $25 million.

Additionally, there is the mansion tax in New York City assessed on real estate transactions over $1 million.

The mansion tax, paid by buyers, starts at 1% of the purchase price over $1 million but under $2 million. It is a tiered tax structure with the highest mansion tax rate at 3.9% for a real estate purchase of $25 million or greater.

It is no wonder New York State holds the top ranking of all 50 states in 2022 when it comes to the highest state and local taxes paid as a percentage of income. This includes not only income taxes, but other state and local taxes such as sales tax and real estate tax.

Millionaires Are Fleeing New York

It pains me to write this but it appears millionaires are fleeing New York City.

According to the Henley Global Citizens Report 2002 Q3, New York lost 12% of the people with $1 million+ in investable assets.

Those wealthy individuals fled the city because of the pandemic and a host of other reasons. High taxes are cited as one of the primary reasons.

A number of them moved down to Florida because of the weather and no state income taxes. Millionaire earners can save 10%+ in taxes by making that move down to the Sunshine State.

Others moved to the suburbs of Long Island, Westchester, New Jersey, and Connecticut.

Some millionaire New Yorkers even opted for more open spaces in states like Hawaii, Colorado, Utah, and Wyoming.

As a native New Yorker, crime is one factor that concerns me here.

If crime gets worse in New York City, I might explore relocating the family as well.

Hopefully, over time, New York can attract those wealthy individuals back to the city.

Those millionaires do provide income tax revenue for the state and city. Not to mention, they also run companies that help employ New Yorkers as well.

The Millionaire Lifestyle

Now, being rich is in the eye of the beholder.

A millionaire lifestyle isn’t necessarily very luxurious when living in such an expensive city with high tax rates.

Take a look at the household budget on what a million dollar per year income can get you in NYC for a family of 4. It might surprise you that a million dollar income in Manhattan might not go that far.

In my opinion, it takes $502,000 to live an upper middle class lifestyle in Manhattan and $1,218,000 to live an upper class lifestyle in Manhattan.

These two amounts are the cash amounts needed on an annual basis. The gross income amount runs double these two amounts.

To have an upper middle class lifestyle for a family of 4, the household pre-tax income needs to be at least $912,000 assuming a 45% income tax rate.

A household pre-tax income of $2,200,000 is needed for an upper class lifestyle.

To a great extent, a large number of the millionaires living in New York City are part of the working class looking to make enough to pay their mortgages and fund their retirement. They are not living extravagant lifestyles.

Summary:

America is still the land of opportunities with the greatest number of millionaires and billionaires in the world.

Looking at the United States, the same 4 states have the most millionaire residents and the most billionaire residents: New York, California, Texas, and Florida.

As the best city in the world, New York City has the most millionaires and billionaires calling NYC home.

New York City is very expensive but comes with many great benefits that wealthy individuals find appealing.

To The Audience: If you are a millionaire, where do you live? Why did you choose to live there? Are you a millionaire living in New York City? If yes, how is the experience for you?