According to a recent survey conducted by Henley & Partners, the Big Apple boasts 340,000 high-net-worth individuals, contributing to a growth rate of 40% over the past decade. It seems that the affluent population loves the Big Apple, but when it comes to the upper-upper echelons of the super-rich, the West Coast is where it's at.
Home to tech giants like Google and Facebook, the Bay Area has the highest number of billionaires worldwide, with a total of 63, compared to New York's 58. The Silicon Valley region's dominance in venture capital and the tech industry is undoubtedly a major contributor to its wealth and status as a leading global hub.
Tokyo and London both made the list despite an overall drop in wealthy residents, with Tokyo losing 5 percent and London losing 15 percent over the past decade. The Bay Area and Singapore, on the other hand, have seen impressive spikes, with the California region shooting up 68 percent and Singapore growing by 40 percent.
It's clear that the super-rich are attracted to certain areas, but what makes a city wealthy?
It's actually quite similar to some of the factors we look at when considering markets for multifamily investments. There are a few factors at play, including access to job opportunities, a robust economy and a thriving cultural/food scene, among others. These factors help to attract and retain affluent individuals and their families, who, in turn, contribute to the city's wealth and prosperity.
The United States dominated the list, with 10 cities cracking the top 50 richest in the world, beating out China and Australia.
Some American cities, in particular, have seen substantial growth in their high-net-worth populations since 2012. Austin, Texas, came in second place overall in this regard, with a 102% increase in HNWIs. Miami and West Palm Beach in Florida also experienced impressive growth rates of 75% and 90%, respectively. This could be attributed in part to the pandemic-induced shift towards remote work, which allowed business leaders to relocate to warmer climates like Florida.
In contrast, Russia, which has long been known for its wealthy population, has seen a significant decline over the past decade, partly due to its war with Ukraine and other factors. Moscow experienced a 44% decline in its high-net-worth population, while St. Petersburg saw a decrease of 38%.
A city's real estate market & lifestyle also plays a role in attracting wealthy individuals. While office buildings have been under pressure, New York City & the Bay Area have some of the most expensive residential real estate in the world, with luxury properties selling for tens of millions of dollars. Wealthy individuals are attracted to the prestige and exclusivity that comes with owning a property in a city that can offer them almost anything they want.
However, economic downturns can have a significant impact on a city's high-net-worth population. The 2008 financial crisis saw a decline in the number of millionaires and billionaires in New York City, as well as a drop in real estate prices.
The pandemic also shifted the way people think about where they want to live. With remote work becoming more prevalent, many individuals and families are no longer tied to specific locations for their careers.
This has led to a rise in interest in areas outside of traditional hubs like New York and London, as people seek out more space, better weather, and a change of pace. Even with the current trend of returning to offices in some industries, many companies have been moving their headquarters to metros that may offer more business friendly policies in addition to lower costs and warmer climates.
As the world continues to change, it will be interesting to see how these shifts in wealth and population play out.
Will New York City maintain its status as the world's richest city, or will other areas rise to take its place? Only time will tell, but one thing is certain: wherever the super-rich decide to settle, they will bring with them their own unique brand of influence and prosperity.
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
