american ultra wealth ranking 2014 2015
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American Ultra Wealth Ranking 2014 2015TRANSCRIPT
1UHNW USA REGIONAL REPORT | WEALTH-X INSTITUTE SPECIAL REPORT
AMERICAN ULTRA WEALTH RANKING 2014-2015WEALTH-X SPECIAL REPORTWWW.WEALTHX.COM
1AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
MYKOLAS D. RAMBUS CHIEF EXECUTIVE OFFICER
DAVID S. FRIEDMAN PRESIDENT
RIDZWAN AMINUDDIN SENIOR VICE PRESIDENT OF PRODUCTS
DAVID LINCOLN WEALTH-X INSTITUTE DIRECTOR
BENJAMIN KINNARD WEALTH-X INSTITUTE RESEARCH FELLOW
SARAH MERETTE WEALTH-X INSTITUTE RESEARCH FELLOW
LYNN M. RAYNAULT VICE PRESIDENT GLOBAL MARKETING
FAUZI AHMAD DIRECTOR OF COMMUNICATIONS AND MEDIA RELATIONS
MELANIE LAM MARKETING EXECUTIVE
WILL CITRIN MANAGING EDITOR
RAVEENA RAJAVETTI VICE PRESIDENT OF RESEARCH
A SPECIAL THANK YOU TO OUR RESEARCH ANALYSTS AROUND THE
WORLD WHO MADE THIS REPORT POSSIBLE.
THIS PUBLICATION IS FOR YOUR INFORMATION ONLY AND IS NOT INTENDED AS AN OFFER,
OR A SOLICITATION OF AN OFFER, TO BUY OR SELL ANY PRODUCT OR OTHER SPECIFIC SERVICE.
ALL INFORMATION AND OPINIONS INDICATED ARE SUBJECT TO CHANGE WITHOUT NOTICE.
2AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
US $1 B+ 571 ▲ 10.9% (2013-2014)
350 ▲ 22.8%
1,110 ▲ 20.0%
2,135 ▲ 9.8%
3,940 ▲ 2.9%
5,285 ▲ 4.0%
21,380 ▲ 3.8%
34,789 ▲ 7.6%
US $750-999M
US $500-749M
US $250-499M
US $200-249M
US $100-199M
US $50-99M
US $30-49M
UHNW POPULATION
UHNW WEALTH
UHNW POPULATION BY WEALTHTOTAL POPULATION 69,560 ▲6.2% (2013-2014)
US $2,266 BILLION ▲ 9.8% (2013-2014)
US $290 BILLION ▲ 7.4%
US $755 BILLION ▲ 15.1%
US $954 BILLION ▲ 1.0%
US $920 BILLION ▲ 3.4%
US $1,020 BILLION ▲ 2.5%
US $1,950 BILLION ▲ 3.2%
US $1,475 BILLION ▲ 7.3%
US $1 B+
US $750-999M
US $500-749M
US $250-499M
US $200-249M
US $100-199M
US $50-99M
US $30-49M
US $1 B+ 571 ▲ 10.9% (2013-2014)
350 ▲ 22.8%
1,110 ▲ 20.0%
2,135 ▲ 9.8%
3,940 ▲ 2.9%
5,285 ▲ 4.0%
21,380 ▲ 3.8%
34,789 ▲ 7.6%
US $750-999M
US $500-749M
US $250-499M
US $200-249M
US $100-199M
US $50-99M
US $30-49M
UHNW POPULATION
UHNW WEALTH
UHNW POPULATION BY WEALTHTOTAL POPULATION 69,560 ▲6.2% (2013-2014)
US $2,266 BILLION ▲ 9.8% (2013-2014)
US $290 BILLION ▲ 7.4%
US $755 BILLION ▲ 15.1%
US $954 BILLION ▲ 1.0%
US $920 BILLION ▲ 3.4%
US $1,020 BILLION ▲ 2.5%
US $1,950 BILLION ▲ 3.2%
US $1,475 BILLION ▲ 7.3%
US $1 B+
US $750-999M
US $500-749M
US $250-499M
US $200-249M
US $100-199M
US $50-99M
US $30-49M
The United States of America has the world’s largest ultra high net worth (UHNW) population and more UHNW wealth than any other country in the world. The US is also home to the largest population of billionaires in the world. There are more UHNW individuals worth US$30 million to US$49 million in the US than there are UHNW individuals of all wealth tiers in any other country.
UNITED STATES OF AMERICASPECIAL REPORT
UHNW POPULATION TOTAL POPULATION 69,560 ▲ 6.2% (2013-2014)
UHNW WEALTH TOTAL WEALTH 9,630 BILLION ▲ 6.0% (2013-2014)
3AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
The United States is home to 69,560 ultra high net worth (UHNW) individuals, equivalent to a third of the global UHNW population. 13 of the country’s cities have UHNW populations of over 1,000 individuals, and 35 of the 100 top cities in the world, in terms of UHNW population size, are in the United States.
The 30 cities with the largest UHNW populations in the United States are listed below. Over 65% of the country’s total UHNW population is based in these 30 cities. Charlotte, ranked 30th in this list, has a UHNW population larger than numerous Middle Eastern countries including Israel, Lebanon, Qatar and Bahrain.
If we look at the geographical distribution of the UHNW population across the United States, we notice that, in most states, the UHNW population is primarily concentrated in just one major metropolitan area. Only four out of the country’s 50 states have more than one city with substantial UHNW populations: California, Texas, Florida, and Missouri.
TOP 30 US CITIES LIST BY RANK
1 1 NEW YORK CITY, NY 8,655
4 2 SAN FRANCISCO, CA 5,460
5 3 LOS ANGELES, CA 5,135
9 4 CHICAGO, IL 2,885
11 5 WASHINGTON DC* 2,730
12 6 HOUSTON, TX 2,545
15 7 DALLAS - FORTH WORTH, TX 2,330
31 8 ATLANTA, GA 1,230
36 9 SEATTLE, WA 1,095
37 10 SAN DIEGO, CA 1,090
38 11 MIAMI, FL 1,085
38 11 DETROIT, MI 1,085
40 13 BOSTON, MA 1,040
41 14 MINNEAPOLIS, MN 990
46 15 DENVER, CO 850
51 16 PHILADELPHIA, PA 695
52 17 MILWAUKEE, WI 685
58 17 ORLANDO, FL 640
61 19 INDIANAPOLIS, IN 615
62 20 KANSAS CITY, MO 610
65 21 AUSTIN, TX 580
65 21 TAMPA, FL 580
68 23 SACRAMENTO, CA 550
75 24 NASHVILLE, TN 490
76 25 CLEVELAND, OH 480
76 25 FRESNO, CA 480
78 27 PHOENIX, AZ 475
78 27 ST. LOUIS, MO 475
82 29 PALM BEACH, FL 455
88 30 CHARLOTTE, NC 440
12
3
23
25
6
78
10
11
4
131411
15
20
21
17
19
1729
21
27
26
1625
302427
WORLD RANK
USA RANK
* WASHINGTON, D.C. REPRESENTS THE METRO AREA AND EXTENDS INTO MARYLAND, VIRGINIA AND WEST VIRGINIA.
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New York City - which has the largest UHNW population of any metro-politan area in the world - is home to just over 12%
of the United States’ UHNW popula-tion. The city’s UHNW population is largely derived from the financial sec-tor, but other industries also contribute to its ultra affluent numbers.
California is the largest state in the United States in terms of UHNW pop-ulation size – the state is home to 13, 445 UHNW individuals, up 7% from last year. Although five cities in California are ranked in the top 30 cities in terms of UHNW population size, the state has two distinct major metropolitan areas: San Francisco, renowned for the strength of its technology sector, and Los Angeles, a world-famous entertain-ment hub. Together, these cities account
for 79% of the state’s entire UHNW population. San Diego, the tenth largest city in the United States in terms of UHNW population, trails behind these two centres, but the city’s UHNW population has grown by almost 15% in the last year, driven largely by the technology and biotechnology sectors. Other smaller metropolitan areas such as Fresno and Sacramento have signif-icant UHNW populations, with the former being a centre for the state’s food production industry due to its large ag-ricultural sector and the latter growing in conjunction with the development of the Bay Area.
Illinois’ UHNW population is almost entirely concentrated in Chicago, although almost 10% of the city’s metropolitan area is in Wisconsin or Indiana. The city’s UHNW population has grown by 8.3% since 2013 despite
a weak job market. In 2014, Chicago’s business activity was strong, with a pos-itive outlook that benefited numerous sectors of the city’s economy.
Washington D.C.’ s metropolitan area comprises the country’s fifth largest city in terms of UHNW population, and the world’s 11th largest. Only 20% of this UHNW population is based within the boundaries of the District of Columbia, with Maryland accounting for almost 40% of the city’s UHNW population. Although the not-for-profit sector is particularly important within the boundaries of the District of Columbia, the two most significant sectors within the Washington met-ropolitan area are finance, banking & investment and technology.
As with California, Texas has more than one main metropolitan area, Houston
5AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
and Dallas-Forth Worth, which, com-bined, hold three quarters of the state’s entire UHNW population. In the last year, the UHNW population of Dal-las-Forth Worth has grown almost twice as fast as Houston at 4%. Nonetheless, Texas’ UHNW population growth was disappointingly low, at 3%, compared to the national average of 6.2%. With the drop in oil prices, we expect to see UHNW population growth in the state stagnate or even decrease in the coming year. Austin also appears on the top 30 list of American cities. However, the city pales in comparison to Houston and Dallas-Forth Worth, holding less than 10% of the state’s UHNW population.
Despite Georgia being only the 18th largest state in the country in terms of UHNW population size, Atlanta is the country’s eighth largest UHNW metropolitan hub. Atlanta boasts a UHNW population that is the same size as the UHNW population of Rus-sia. In the last year, the city experienced 8%, growth in its UHNW population,
with the finance and insurance sectors responsible for the bulk of this growth.
Seattle has the ninth largest UHNW population in the United States. Al-though it actually has a larger UHNW population than Portugal, its growth over the past year has been disappoint-ing, with a net gain of only 25 UHNW individuals. The entire state of Wash-ington experienced a net gain of 50 UHNW individuals in 2014.
Miami has the largest UHNW pop-ulation in Florida with a population almost twice the size of that of Orlando, the state’s second largest UHNW city. Yet, less than one quarter of Florida’s UHNW population of 4,650 individuals are based in Miami, a sharp contrast from the other top states in the coun-try. Even when taking into account the combined UHNW population of the top five cities in Florida, more than 30% of the state’s UHNW population lives outside these cities. One of the main reasons for this phenomenon is the
state’s sizeable coastal area, which has facilitated the development of a larger number of metropolitan areas, and Florida’s popularity as a relocation des-tination for UHNW individuals from other states - mainly due its climate and high living standard – which has enabled smaller metropolitan areas to attract UHNW individuals from across the country.
Home to 74% of Massachusetts’ UHNW population, Boston’s UHNW population is primarily concentrated in the finance, banking and investment industry, with almost 70% of these individuals involved in this sector. Mas-sachusetts in general and Boston in par-ticular have experienced strong growth in the technology sector, and this trend looks set to continue in 2015. In fact, our estimates suggest that in the coming year Massachusetts will overtake Ohio in terms of UHNW population size.
Minnesota’s UHNW population grew by 3.6%, adding less than 50 UHNW
6
individuals this year. The median age of Minneapolis’ entrepreneurs is almost 10 years older than that of those UHNW individuals with inherited wealth, suggesting slow growth in new business ventures in the state. However, with the looming wealth transfer from the ageing baby-boomers comes new opportunities for the next generation. We expect that stagnant growth in Minneapolis’ UHNW population over the next five years will be followed by a period of new wealth creation and opportunities outside of the traditional manufacturing and banking sectors, which currently dominate the state’s wealth creation landscape.
The city of Detroit is re-inventing itself and has a flourishing small businesses sector, particularly in terms of services and hospitality. A by-product of this has been the fast growth of the UHNW population in the city and state of Mich-igan, which grew by 10.7% in the last year alone. Yet, Detroit is home to only 985 UHNW individuals, 46% of the state’s population. Outside of Detroit, while the automotive industry remains the primary source from which UHNW wealth is generated, other sectors such as healthcare and real estate are becom-ing increasingly significant.
Colorado has seen growth of a 5.1% in its UHNW population due in large part to increasing demand for both tour-ism-related services and growth in other core sectors such as mining. However, in Denver, where a quarter of the popula-tion is involved in the oil and consum-able fuels industry, the recent drop in oil prices has dampened the prospects of the city’s UHNW population growth.
Despite being the largest hub for Pennsylvania’s UHNW population,
7AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
year, compared to an average of 6.2%. Yet positive developments in other industries from finance, banking and investment to healthcare, technology and real estate are occurring, showing promising new avenues for wealth creation in Cleveland.
Home to Fortune 500 companies and other large corporations, Phoenix has a diverse population of UHNW individuals - from the construction industry to shipping and finance. The city is also a major hub of self-made wealth with almost 90% of its UHNW population having fully made their own fortunes - compared to 76% nationally. Furthermore, both the state and the city have grown at the same rate as the national average - 6.2% - demonstrating that Phoenix’ wealth creation prospects remain strong.
Unsurprisingly, considering the city’s role as a major financial hub, Charlotte’s UHNW population is primarily made up of individuals involved in the finance, banking and investment industry. However, the city is home to only 37% of the state’s UHNW population, a lower proportion than most other cities in our top 30 list. Indeed, Raleigh serves as another centre of wealth creation in North Carolina, with both cities togeth-er accounting for almost two thirds of the state’s UHNW population.
Although more than half of Kansas City’s UHNW population is based in the Kansas state side of the city, Kan-sas City, Missouri is the state’s largest UHNW hub, with a UHNW popula-tion equal to that of Ireland. St. Louis is among top 30 largest American cities in terms of UHNW population size, and ranks 89th worldwide. Unlike Kansas City, where the finance, banking and investment sector dominates the wealth creation landscape, 14% of St. Louis’ UHNW population is involved in the manufacturing sector and other indus-tries such as biotechnology and technol-ogy are growing in importance. However, the city may experience some adjust-ment before further growth can occur.
Despite being known as the home of country music, Nashville’s UHNW population comes from a diverse group of industries – from manufacturing to healthcare and the finance, banking and investment industry. Although Nash-ville is the state’s largest city and home to over 40% of the UHNW popula-tion, Tennessee’s UHNW population is spread across other smaller hubs including Memphis and Knoxville.
As with Tennessee, although Cleveland has the state’s largest UHNW popula-tion, both Columbus and Cincinnati are significant hubs for the state’s UHNW population. Home to old fortunes made through manufacturing, chemi-cals, metals and mining and other such industries, the state has seen relatively slow growth in UHNW population recently, growing at 3.4% in the last
the city’s UHNW population accounts for less than half of the state’s entire UHNW population. Among the UHNW individuals living outside this hub, almost a quarter fully inherited their wealth - often through manu-facturing businesses. As the American economy continues to grow, the rise of the services industry as well as the finance, banking and investment sector will likely result in an increase in the relative significance of Philadelphia in Pennsylvania’s UHNW population.
Milwaukee is Wisconsin’s largest city and accounts for almost half of the state’s UHNW population. The city’s relatively large number of Fortune 500 headquarters has spurred the develop-ment of the business services sector and a large proportion of the city’s UHNW population is involved in the finance, banking and investment industry. Yet, Wisconsin’s UHNW individuals are older than average, with a median age of 65 and the state’s UHNW growth has been slow at 2.2%, suggesting that Wis-consin’s economy is in need of a boost.
Indianapolis’ UHNW population is pri-marily engaged in the real estate indus-try, with sectors such as media, commu-nications and technology growing fast. The city’s rejuvenation has led to much of this growth and currently, Indianapo-lis is home to 56% of the state’s UHNW population. As development in the city spreads outside the metropolitan area, we expect the state’s total UHNW population to continue to increase at a rapid clip, as it has in the past year with a growth rate of over 7%.
New York City - which has the largest UHNW population of any metropolitan area in the world - is home to just over 12% of the United States’ UHNW population.
8AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
THE RICHEST US STATES BY UHNW POPULATION
UHNW POPULATION PERCENTAGE INCREASE 2013-2014
ALASKA 0.0%
HAWAII 0.0%
WISCONSIN 2.2%
CONNECTICUT 2.6%
TEXAS 3.0%
MISSOURI 3.1%
ILLINOIS 3.2%
PENNSYLVANIA 3.2%
OHIO 3.4%
MINNESOTA 3.6%
NEW JERSEY 3.6%
NEW MEXICO 3.8%
VERMONT 4.0%
WASHINGTON 4.2%
GEORGIA 4.4%
KANSAS 4.5%
VIRGINIA 4.8%
MASSACHUSETTS 4.8%
LOUISIANA 5.0%
OKLAHOMA 5.1%
COLORADO 5.1%
MISSISSIPPI 5.1%
NORTH CAROLINA 5.3%
NEW HAMPSHIRE 5.4%
SOUTH CAROLINA 5.5%
OREGON 6.1%
ARIZONA 6.2%
NEW YORK 6.5%
MARYLAND 6.6%
NEBRASKA 6.8%
CALIFORNIA 7.0%
MONTANA 7.0%
IOWA 7.1%
WEST VIRGINIA 7.3%
INDIANA 7.3%
RHODE ISLAND 7.5%
KENTUCKY 7.8%
ALABAMA 7.9%
IDAHO 7.9%
WASHINGTON DC 8.0%
ARKANSAS 8.2%
TENNESSEE 9.0%
DELAWARE 9.1%
FLORIDA 10.3%
MICHIGAN 10.7%
UTAH 11.1%
WYOMING 11.1%
MAINE 11.8%
NEVADA 12.0%
SOUTH DAKOTA 13.3%
NORTH DAKOTA 14.3%
0 - 2.9% 3.0 - 4.9% 5.0 - 6.9% 7.0 - 9.9% >10%
1,410 MASSACHUSETTS
285 RHODE ISLAND
1,365 CONNECTICUT 1,280 NEW JERSEY
60 DELAWARE
1,365 MARYLAND 540 WASHINGTON, DC
95MAINE1,240
WASHINGTON
435OREGON
13,445CALIFORNIA
560NEVADA
205IDAHO
380MONTANA 80
NORTH DAKOTA
170SOUTH DAKOTA
315NEBRASKA
350WYOMING
250UTAH
1,030ARIZONA 135
NEW MEXICO
50ALASKA
1,140COLORADO 575
KANSAS 825MISSOURI
225IOWA
1,285MINNESOTA
1,400WISCONSIN
935OKLAHOMA 595
ARKANSAS
6,475TEXAS 420
LOUISIANA
310MISSISSIPPI
2,860ILLINOIS
215HAWAII
1,315GEORGIA
1,195NORTH CAROLINA
220WESTVIRGINIA415
KENTUCKY
9,530NEW YORK
1,620PENNSYLVANIA
1,105IINDIANA
2,125MICHIGAN
1,145TENNESSEE
4,650FLORIDA
410ALABAMA
1,505 OHIO
195 NEW HAMPSHIRE
130VERMONT
1,310VIRGINIA
385SOUTH CAROLINA
9AMERICAN ULTRA WEALTH RANKING 2014-2015 | WEALTH-X SPECIAL REPORT
Breaking down America’s UHNW population by state, we see that some states are particularly significant: for example,
there are more UHNW individuals in California than in the United King-dom, there are more UHNW individu-als in New York than there are in India, and there are more UHNW individuals in Texas than in all of Canada.
Alaska was the only US state to experi-ence a decline in GDP over the last year, while Hawaii experienced no growth. It is therefore not surprising that, in the last year, Alaska and Hawaii experienced no growth in their UHNW popula-tions, while New Mexico and Vermont only saw an increase of five UHNW individuals over the same time period. Wisconsin and Connecticut also experi-enced disappointing growth, with their UHNW populations increasing by less than 3%, adding only 30 and 35 UHNW individuals, respectively. Those four states also experienced below average GDP growth.
The state with the fastest growing UHNW population was North Dakota, although the absolute increase was only of 10 individuals. The second fastest
UHNW population growth was seen in South Dakota, although the increase was only of 20 individuals. These states experienced some of the fastest growth in GDP, causing existing businesses to become increasingly profitable and enabling a significant number of individ-uals to cross the UHNW threshold of US$30 million.
The strong growth witnessed in Flor-ida’s financial and real estate sectors led to a sizeable increase in the state’s UHNW population. Florida’s UHNW population grew by more than 10%, adding almost 500 new individuals over the past year. Michigan was also a strong performer, benefiting from a surge in investment and a rising confidence in the state’s economic outlook. The size of Michigan’s UHNW population expanded by more than 10%, with the addition of over 200 individuals. Cali-fornia and New York added the largest number of new UHNW individuals — there were 1,470 new UHNW individ-uals in these two states alone. Although these states’ GDP growth was not as impressive as that seen in other states, they have a number of advantages, one of them being the high concentration of UHNW population and businesses already established there.
CALIFORNIA 13,445 12,560
NEW YORK 9,530 8,945
TEXAS 6,475 6,285
FLORIDA 4,650 4,215
ILLINOIS 2,860 2,770
MICHIGAN 2,125 1,920
PENNSYLVANIA 1,620 1,570
OHIO 1,505 1,455
MASSACHUSETTS 1,410 1,345
WISCONSIN 1,400 1,370
CONNECTICUT 1,365 1,330
MARYLAND 1,365 1,280
VIRGINIA 1,310 1,250
MINNESOTA 1,285 1,240
NEW JERSEY 1,280 1,235
WASHINGTON 1,240 1,190
NORTH CAROLINA 1,195 1,135
GEORGIA 1,315 1,260
TENNESSEE 1,145 1,050
COLORADO 1,140 1,085
INDIANA 1,105 1,030
ARIZONA 1,030 970
OKLAHOMA 935 890
MISSOURI 825 800
ARKANSAS 595 550
KANSAS 575 550
NEVADA 560 500
DISTRICT OF COLUMBIA 540 500
OREGON 435 410
LOUISIANA 420 400
KENTUCKY 415 385
ALABAMA 410 380
SOUTH CAROLINA 385 365
MONTANA 380 355
WYOMING 350 315
NEBRASKA 315 295
MISSISSIPPI 310 295
RHODE ISLAND 285 265
UTAH 250 225
IOWA 225 210
WEST VIRGINIA 220 205
HAWAII 215 215
IDAHO 205 190
NEW HAMPSHIRE 195 185
SOUTH DAKOTA 170 150
NEW MEXICO 135 130
VERMONT 130 125
MAINE 95 85
NORTH DAKOTA 80 70
DELAWARE 60 55
ALASKA 50 50
TOTAL POPULATION 69,560 65,505
2014 UHNW POPULATION
2013 UHNW POPULATION
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