Phoenix Marketing International (PMI), a reputable market research enterprise noted that some 8,386,508 US households of 125,018,808 total households are now in the millionaire bracket. That amounts to 6.71% of US households enjoying millionaire status.
When it comes to ranking individual states in terms of the numbers of millionaires per state, some interesting trends emerge. While many of these households have accumulated their wealth over a long period of time, a handful has hit pay dirt at places like VIP casino in Canada, the Powerball, or even Mega Millions.
Without further ado, let’s take a look at the poorest ten states, including the likes of:
- West Virginia
- New Mexico
Are Red States Poorer than Blue States?
It’s worth pointing out that many of these are blue-collar states, and largely Republican – not that it matters. The wealthiest 10 states and territories include the following:
- New Hampshire
- District of Columbia
- New Jersey
California ranks at #7 in terms of millionaire households/total households in the nation, at 1,147,251 millionaire households/13,477 890 total households, or a concentration of 8.51%. In California, the average annual income for households is $75,277, and the median home value is listed at $546,800.
The Golden State boasts a cost of living that is almost 25% higher than the US average. The wealthiest person in California is Larry Ellison of Oracle, at around $67 billion. Compare that to New Jersey – the state with the most millionaire households, and the numbers are pretty similar.
New Jersey has 323, 443 millionaire households/3,312,916 total households with a concentration of 9.76%. The median income for all households in New Jersey is $81,740, with a median home value of $344,000. Unfortunately, this metric doesn’t tell the true story. In New Jersey, people pay 13.4% more in taxes than the average across the US.
Property taxes are particularly punishing in the Garden State, much like they are in California. New Jersey’s wealthiest person is John Overdeck of Two Sigma Investments, valued at around $6.1 billion.
For those who are keen to draw parallels between wealth and political affiliation, especially in an election year, most of the top 10 states with the highest concentration of millionaire households are run by Democrats.
California’s Wealth is Immense
California’s luxury property market is also trending bullish, with serious buyers looking to lay claim to prime real estate across the Golden State. Many luxury property realtors are running out of inventories just as quickly as properties get listed. For example, in June and July 2020, Northbay and Marin County real estate hit record sales volumes, following a devastating downturn in April and May.
People are fleeing from the urban sprawl and seeking the rugged appeal of luxurious Californian lifestyles in the mountains and hills of less populated areas. Foremost among them is Lake Tahoe. SoCal is particularly exciting to buyers, since it has great weather and high property values. Such is the nature of the red-hot property market that people are prepared to pay a premium on the asking price.
The Twist: The dynamic and unprecedented global situation has facilitated a dramatic increase in remote workers, which is now directly impacting the property market of high-priced enclaves such as San Francisco and surrounds. Now that highly skilled workers don’t have to to attend work in person, they can afford to live outside of these expensive areas, get much better value for money, save much more money, and enjoy a better quality lifestyle in California, or elsewhere.
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