Yahoo Finance Why These 3 US Cities Have Become Millionaire Meccas
Money doesn’t just change hands — it also changes locations.
A new report from Henley & Partners, a firm specializing in residence by investment for wealthy families, identified the cities that saw the biggest influx of ultra-wealthy residents between 2012 and 2022. [1]
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It turns out that the United States is home to three of the world’s top 10 millionaire meccas, and they share a few common traits that the rich look for when they move.
“When you’re a millionaire, it’s all about the lifestyle,” said Ari Chazanas, president and CEO of Lotus West Properties, a property management, development and investment firm established in 1999. “You want to be somewhere that has a great climate, lots of activities, and an excellent quality of life.”
Here’s a look at three U.S. cities that are filling up fastest with people who could afford to live anywhere.
Austin, Texas
The capital of Texas saw its millionaire population grow by 102% during the last decade, and the rich are hardly alone in flocking there. According to a local NBC affiliate, Austin has been the fastest-growing city in America for 11 years straight — and it’s not hard to understand why.
“Austin is home to a vibrant cultural scene with an abundance of music, art, food, and entertainment attractions,” said Keith Sant, a licensed Realtor and the head of property acquisitions and CTO of Texas Cash House Buyer.
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Silicon Valley, Meet Silicon Hills
It’s not just food, fun and music. The 1% tend to follow the money, and the money follows the tech sector, which has declared Austin as its home away from the San Francisco Bay.
“The city has experienced significant growth over the past decade due to its thriving economy, fueled by major employers such as Dell Technologies, Apple Inc., Oracle Corporation, and IBM,” said Sant. “Austin also boasts one of the strongest job markets in the country, which has attracted many high-income earners to the area.”
Not only have major companies like Tesla added their presence to Austin’s ever-growing skyline, but startup activity is so strong that venture capitalists invested $5.5 billion through 412 deals there in 2021 alone, according to PitchBook — more than double the year before.
“That’s why it’s become known as Silicon Hills,” said Chazanas. “Because so many tech companies have set up shop there.”
Anyone looking to buy a house has noticed the results are similar to when high-income techies flooded once-affordable San Francisco. According to Hunt Capital Partners, the median home value in Austin soared from $349,156 in 2020 to $566,479 in 2022, with average multifamily rents increasing 10% year over year.
West Palm Beach, Florida
West Palm Beach is nestled among some of South Florida’s most famous enclaves for the 1%, including Jupiter Island, Boca Raton and Miami — and it saw its share of millionaires rise by 90% over the last 10 years.
“West Palm Beach offers mild winters, pristine beaches and abundant golf courses, making it a desirable destination for many affluent individuals,” said Sant. “The city is home to several world-class resorts and offers diverse employment opportunities in industries such as finance, hospitality, education, and healthcare. West Palm Beach has experienced increased population growth due to its strong job market, vibrant culture and luxurious lifestyle amenities.”
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The Henley report calls West Palm Beach “an increasingly popular retirement hotspot for East Coast millionaires from cities such as Boston, New York City and Philadelphia.” The COVID crisis only accelerated that trend.
“Ever since the pandemic paradigm shift of people leaving cities, the West Palm Beach area has seen a large influx of very wealthy persons relocating to the Sunshine State from more expensive major metropolitan areas,” said Scott J. Wheeler of Posh Properties, who has worked for more than 20 years as a licensed Realtor and former direct lender in Palm Beach County.
The Henley report confirms that assessment, stating that “many wealthy individuals are opting to work remotely in the area post-COVID, especially those in the fund management sector.”
An Oasis Among South Florida Oases of Generational Wealth
If you have the means, West Palm Beach is not a difficult place to get used to.
“The benefits of establishing residency here are that there is no state income tax, which can be extremely important to those in higher earnings brackets,” said Wheeler. “The weather here in South Florida can be much more desirable than many areas of the country, and West Palm has a vibrancy and cultural offerings and is less congested than larger Florida cities such as Miami or Fort Lauderdale. Additionally, the West Palm Beach MSA includes exclusive Palm Beach Island, which is a location well known for generational wealth, contributing to the statistics of West Palm Beach as being one of the three fastest-growing millionaire hotspots. The next generation of Palm Beachers has rediscovered the beauty and attraction of living on the island that their parents or grandparents established.”
Scottsdale, Arizona
Like Austin and West Palm Beach, sunny Scottsdale offers amenities that are attractive to all income demographics.
“Scottsdale is known for being a family-friendly city with plenty of fun things to do, from golfing to hiking and more,” said Chazanas. “It’s also near Phoenix, which offers more dining options than most people realize, including some excellent restaurants owned by celebrity chefs like Tom Colicchio and Wolfgang Puck. Plus, it’s close enough that you can get out of town when you need some time alone.”
Those are just some of the reasons why the city saw its percentage of wealthy households grow by 88% in 10 years.
World-Class Golf, Luxury Living and Low Investor Taxes
The Henley report shows that Scottsdale is now home to roughly 13,900 millionaires, including 60 or so “centi-millionaires” with nine-figure net worths. Five are billionaires.
“Scottsdale is another city that has seen a surge of millionaires over the past decade,” said Sant. “The sunny desert climate and luxurious lifestyle offerings entice wealthy individuals to settle down in this metropolitan oasis. Scottsdale is home to numerous Fortune 500 companies and is renowned for its thriving real estate market, which has helped draw in many wealthy homebuyers.”
The Henley report also cites the city’s growing list of exclusive golf and luxury lifestyle estates and, like Austin, a large influx of tech entrepreneurs from California. According to a local CBS affiliate, low taxes are also part of the draw, particularly capital gains taxes, which are levied at the regular flat rate of 2.5%, one of the lowest in the country.
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