In recent years, smaller cities in America have been attracting more and more millionaires, with cities like Austin, Texas, and Scottsdale, Arizona, leading the way. According to the 2023 wealth report by Henley and Partners, these cities are gaining millionaire residents, while larger cities like New York City and Chicago are losing them.
Austin, Texas, in particular, has seen a tremendous influx of millionaires, with a growth rate of 102% from 2012 to 2022. In December 2022, the city was home to 30,500 millionaires, 86 centi-millionaires, and nine billionaires. The growth can be attributed to the city’s emergence as a tech hub, with companies like Amazon, Google, Meta, SpaceX, and Tesla expanding their presence in the city. In 2019, Apple invested $1 billion to build a new campus, and the city has since become a growth market for luxury real estate.
Despite a 5.4% decline year-over-year, the median sale price for a home in Austin was $530,000 as of January 2023, according to Redfin data. This is still well above the national median price of $359,000. With the city’s thriving tech industry and booming real estate market, it’s no wonder why millionaires are flocking to Austin.
Another city that has seen a substantial growth in millionaires is West Palm Beach, Florida, which includes Palm Beach island and the town of West Palm Beach. From 2012 to 2022, the city saw a millionaire growth rate of 90%. As of December 2022, West Palm Beach was home to 9,400 millionaires, 64 centi-millionaires, and six billionaires. The city also ranks as one of the top three cities in the US where millionaires are buying second homes.
Luxury homes are currently on sale in the area ranging from $1.9 million to $89 million, according to Sotheby’s listings. West Palm Beach is also home to many famous faces, including Tommy Hilfiger and Sylvester Stallone.
Scottsdale, Arizona, rounded out the top three fastest-growing cities in the US for millionaires. From 2012 to 2022, Scottsdale saw an 88% millionaire growth rate and is home to 13,900 millionaires, 60 centi-millionaires, and five billionaires, according to the Henley and Partners report. The average home value price in the city is $750,908, up 6.3% over the past year, according to Zillow.
Overall, the trend of millionaires flocking to smaller cities is likely to continue as these cities offer a high quality of life, favorable tax policies, and booming industries. For those interested in luxury real estate or simply curious about where the wealthy are settling down, keeping an eye on these fast-growing cities is a must.