According to Point2Homes, the landscape of wealthy homeowners in the U.S. has undergone a significant transformation in recent years. Here are the key points from their analysis:
Surge in Millionaire Households: The number of U.S. households earning at least $1 million annually more than quadrupled from 2017 to 2022, rising from 30,000 to 136,697.
Generational Shifts:
- Gen X Dominance: The majority of these ultra-wealthy households are headed by Gen Xers, who now make up nearly 40% of millionaire homeowners.
- Baby Boomers and Millennials: Baby Boomers follow at about 30%, while Millennials have increased their share to nearly 20%.
Typical Millionaire Homeowner Profile: The average millionaire homeowner is typically a 50-year-old chief executive or physician residing in San Francisco or New York. They own a $1.8 million home with 10 rooms and five bedrooms, and possess three cars.
Wealth Concentration in Urban Hubs: Coastal cities such as New York, San Francisco, Los Angeles, Boston, and Washington, D.C. have the highest concentrations of millionaire households. New York alone boasts over 26,000 such households.
Income Sources and Lifestyles: Millionaire households often derive their income from diverse sources including salaries, estates, trusts, dividends, and rents. Despite their substantial earnings, many maintain high expenses, often resulting in limited savings.
Housing Preferences: These affluent individuals prefer large, luxurious homes. The average millionaire's home is valued at around $1.8 million, though this figure varies significantly by location. Homes in San Francisco and Los Angeles tend to exceed $2.5 million, while those in cities like Pittsburgh and San Antonio are typically below $1 million.
Economic Impacts and Trends: The rise in millionaire households is part of a broader trend of increasing incomes across various high-income brackets. Conversely, the number of households earning less than $75,000 is decreasing.
Financial Dynamics: Despite their high earnings, many wealthy families face financial pressures due to large mortgages, expensive schooling, and high living costs. This often leads to a "treadmill" effect where income is quickly spent on maintaining an affluent lifestyle.
The rise in millionaire homeowners is reshaping the real estate market, driving demand for high-end properties in affluent areas and influencing home designs and amenities.
If you are looking to navigate this dynamic market, having an experienced real estate agent can make all the difference. Contact me today to find your dream home or sell your property. Click here.