The United States has emerged as the leading destination for millionaires and billionaires, overtaking China in terms of private wealth creation. Recent data from the 2024 USA Wealth Report by Henley & Partners and New World Wealth reveals that there are over 5.5 million Americans with liquid investible assets exceeding $1 million. This represents a staggering 62% growth over the past decade, outpacing the global growth rate of 38%.
Over the past five years, the number of millionaires in the U.S. has surged by 35%, almost double the growth rate of China. Currently, the U.S. is home to 37% of the world’s millionaires, up from 35% in 2018. Significantly, the U.S. leads in the number of centi-millionaires, with 9,850 individuals worth $100 million or more, compared to China’s 2,352. Moreover, the U.S. boasts approximately 788 billionaires, far outpacing China’s 305 billionaires.
The shift from China to the U.S. is attributed to various factors, including strict COVID lockdowns in China and increased government intervention in the private sector. Dominic Volek, group head of private clients at Henley, noted that these elements have impeded wealth creation in China, thereby benefitting the U.S. As a result, a record 13,500 Chinese millionaires left China in 2023, while the U.S. experienced a net inflow of 2,200 millionaires in the same year. The trend is expected to continue with a projected inflow of 3,500 millionaires in 2024, as per the Henley report.
The USA’s unparalleled success in private wealth creation has also translated into significant spending and investment activities. According to a report by UBS and Art Basel, the U.S. leads in global art sales, accounting for 42% of sales by value. Additionally, the U.S. dominates in the sales of the highest-priced art pieces. Bain’s predictions indicate that China’s share of global luxury goods consumption is forecasted to be between 35% to 40% by 2030, only slightly higher than current levels. Moreover, luxury spending in China remains approximately 40% lower than 2019 levels, whereas luxury sales in the U.S. reached $80 billion last year, surpassing China’s $52 billion.
While China will continue to play a significant role in luxury and wealth growth in the years ahead, the U.S. has solidified its position as the primary market and source of growth for high-net-worth individuals. Analysts and economists concur that the U.S. offers exceptional wealth creation opportunities that are unparalleled globally. Dominic Volke summed up this sentiment by stating, “The wealth creation opportunities in the U.S. are second to none worldwide.”
The rise of American millionaires and billionaires signifies a shift in global wealth dynamics, with the U.S. emerging as the frontrunner in private wealth accumulation and luxury consumption. As the trend towards wealth concentration in the U.S. continues, the country is poised to maintain its position as a hub for wealthy individuals seeking lucrative investment opportunities and a luxurious lifestyle.
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