The United States is home to some of the wealthiest individuals and families in the world. But where exactly do the rich live in America? The answer depends on how you define “rich” – the top 1% income bracket, multi-millionaires, or billionaires. Based on income, wealth data, and surveys of high-net-worth individuals, certain states, cities, and neighborhoods stand out as havens for the affluent. From old money enclaves to tech tycoon territories, here’s a look at where the rich reside across the United States.
Defining Wealth in America
To identify where American wealth concentrates, it helps to establish some parameters around what it means to be rich. Here are a few key metrics:
– The top 1%: Americans earning $500,000 or more annually fall within the top income percentile. This bracket includes many high-earning professionals like doctors, lawyers, and corporate executives.
– Millionaires: Households with a net worth of $1 million or more, including home equity. Millionaire status is a broader measure of wealth not limited to income earnings.
– The ultra-wealthy: Those with a net worth starting around $30 million, with investable assets over $100 million. This elite gets the most attention and includes most billionaires.
Wealthiest Cities and Metro Areas
Looking at the geographic data, America’s wealth belt spans both coasts with additional pockets in between:
– The East Coast hubs of New York, Boston, and Washington D.C. have long been elite establishments and home to old money families. Finance, law, and tech money concentrate in these metros.
– On the West Coast, San Francisco and San Jose have the highest density of millionaires thanks to the tech industry.
– Los Angeles, Seattle, Houston, and Dallas have emerged as major economic centers with large wealthy populations.
– Some Midwestern cities like Chicago and Minneapolis are also home to many millionaire households.
Richest States Overall
In terms of entire states, here are the top 10 ranked by how many millionaire households they contain:
1. California: 885,225 millionaire households
2. New York: 465,269
3. Texas: 418,936
4. Florida: 349,621
5. Illinois: 181,251
6. Pennsylvania: 163,540
7. New Jersey: 158,288
8. Massachusetts: 155,138
9. Ohio: 135,297
10. Virginia: 132,863
California has the most millionaires due to Silicon Valley and Hollywood. New York is full of Wall Street financiers and successful entrepreneurs. Texas benefits from the oil and tech industries. Florida is popular for wealthy vacation homeowners and retirees. The other states on the top 10 list contain major cities and robust economies.
Wealthiest Neighborhoods
Drilling down further, America’s richest tend to cluster in certain elite zip codes and prestigious communities within wealthy cities and metro regions. Here are some of the top neighborhoods for multi-millionaires and billionaires:
New York City
– Manhattan: Upper East Side, SoHo, Tribeca
– Brooklyn Heights and Park Slope in Brooklyn
– Scarsdale and Purchase in Westchester County
Los Angeles
– Beverly Hills and Holmby Hills
– Bel Air and Brentwood
– Malibu Beach
Miami
– Fisher Island
– Star Island
– Palm Beach
Chicago
– Lincoln Park
– Lakeview
– Gold Coast
– Winnetka and Lake Forest in suburbs
Houston
– River Oaks
– Memorial Villages
– Hunters Creek Village
San Francisco Bay Area
– Atherton in Silicon Valley
– Hillsborough
– Piedmont
– Ross Bay
Boston
– Back Bay
– Beacon Hill
– Cambridge neighborhoods
The most expensive zip codes in the country are found in these exclusive enclaves where the median home value can be anywhere from $2 million to over $20 million.
Factors Driving Wealthy Settlement Patterns
Why do the rich cluster in certain prime neighborhoods and metro regions? Here are some of the key factors:
Jobs in High-Paying Industries
Many affluent Americans work in finance, law, real estate, healthcare, and tech – industries that cluster in places like Wall Street, Silicon Valley, and major cities.
Business Hubs
Major metro centers offer proximity to corporate headquarters, start-up ecosystems, and deal-making networks valuable for the wealthy business class.
Investment Opportunities
Commercial and residential real estate in wealthy enclaves is attractive for high-value investing.
Luxury Amenities
The rich can afford luxury retail, dining, entertainment, country clubs, and hotels that selectively locate in affluent areas.
Travel Access
Convenient airports and public transit enable luxury travel and commutes for the jet-setting wealthy class.
Private Schools
Exclusive prep schools and elite universities are key draws for the rich and influence where they settle.
Lifestyle Enclaves
Many wealthy Americans congregate in desirable areas and exclusive communities offering both privacy and socializing.
Tax Advantages
States like Texas and Florida offer favorable tax climates for the wealthy versus higher-tax states like New York and California.
Personal History
Multi-generational families of means tend to stay anchored in the same wealthy cities and neighborhoods for status.
Top Countries for Billionaires
For the ultra-elite billionaire class, certain countries stand out for having high concentrations of the mega-rich. According to Forbes 2022 data, here are the top 5 countries ranked by total number of resident billionaires:
| Country | Number of Billionaires |
|---|---|
| United States | 735 |
| China | 628 |
| India | 166 |
| Germany | 136 |
| Russia | 83 |
The U.S. has the most billionaires by a wide margin, boosted by American tech moguls. China has seen rapid billionaire growth recently too. Germany and India are also billionaire hubs. Overall, the U.S., China, and India account for 61% of global billionaires.
Billionaire Cities Worldwide
Zooming in on cities, New York City claims the most resident billionaires worldwide with 118 as of 2022. Here are the top 5 billionaire cities globally:
| City | Number of Billionaires |
|---|---|
| New York City | 118 |
| Beijing | 100 |
| Hong Kong | 71 |
| Moscow | 69 |
| Shenzhen | 68 |
Beijing, Hong Kong, Moscow, and Shenzhen have all produced large numbers of billionaires as well in recent decades. These global cities concentrate tremendous business activity and wealth.
Conclusion
In America, the rich largely live in major coastal cities like New York, Los Angeles, and San Francisco as well as vibrant interior metros like Houston and Chicago. Within these wealthy cities, they congregate in certain exclusive neighborhoods and suburbs known for luxury amenities, expensive homes, and privacy. At the higher end, billionaires predominately reside in global hubs like New York City that allow for business networking and deal-making. While wealth in the U.S. is more dispersed than in some countries, the richest Americans still cluster among each other in key enclaves. Tracking where the wealthy live provides insight into how prosperity concentrates in certain advantaged regions.