In this article, we will be covering the 15 states with the most millionaires per capita in the US. If you want to skip our detailed analysis, you can go directly to the 5 States With the Most Millionaires Per Capita in the US.
Millionaires’ Economy
Millionaires and billionaires are the elites that are the top 1% and top 10% of the wealthiest people in the world. Most millionaires are self-made and through smart financial moves they reach the million-dollar mark. The emergence of the e-commerce market and digital infrastructure has paved the way for young enthusiasts to become millionaires and take their businesses and ideas global. According to the Global Wealth Report 2023 by Credit Suisse, there were an estimated 59.4 million millionaires in the world by the end of 2022. With an overall decline in global wealth, the number of millionaires worldwide fell by 3.5 million in 2022. A major reason for the downfall in the total number of millionaires was high inflation in 2022. In the next five years, global wealth is projected to grow by 38%, reaching $629 trillion by 2027. During the same period, the number of millionaires is expected to reach 86 million, while the number of ultra-high-net-worth individuals (UHNWIs) is likely to rise to 372,000 individuals. By 2027, the wealth per adult is estimated to reach $110,270, which stood at $84,718 by the end of 2022.
On October 27, the Wall Street Journal shared that the average net worth of American families topped $1 million for the first time, rising by 42% from an average household net worth of $749,000 in 2019. The overall wealth gains are purely a phenomenon of the top 1% and top 10% wealthy people. The median wealth has increased more than the average wealth between 2019 and 2022, by 37%. That means wealth inequality did improve and narrowed in the last couple of years. There are almost 16 million American families with a wealth of more than $1 million, as of 2022. Approximately 8 million families are multimillionaires, whose accumulated wealth exceeds $2 million. New York City, The Bay Area, Los Angeles, Chicago, and Boston are the top US cities with the most millionaires in the world. These are also some of the richest US cities by GDP per capita.
On December 15, CNBC shared stats from its Millionaire Survey. As per CNBC, millionaires are holding a lot of cash. Almost 31% of millionaires with more than $1 million in investable assets project the S&P 500 to jump between 5% to 10% in 2024. Around 22% of millionaires expect the S&P 500 to jump more than 10%. While, around 21% of millionaires estimate the markets to remain relatively flat due to uncertain economic conditions such as government dysfunction, high inflation, and increasing national debt. For 2024, around 30% of millionaires are bearish on the economy and 28% expect the economy to remain similar to 2023. The majority of 42% of millionaires expect the economy to be weaker in 2024. Millionaire investors who own 85% of individually held stocks are not positioned for a rally and they are on the defensive side, holding the majority of their cash. The millionaire sentiment regarding the Fed cutting rates in 2024 isn’t strong. Almost 40% of millionaires expect the Fed to cut rates during the second quarter of 2024, while 34% of millionaires expect the Fed to cut rates by or after 2025. In the first quarter of 2024, the majority of millionaires can move out their cash from their portfolios to equities and bonds, as per CNBC’s Robert Frank. The best stocks according to millionaires in 2024 will be the tech and financial stocks.
Stocks From Sectors That Millionaires are Bullish On
As per CNBC, the majority of millionaires are bullish on the tech and financial sector stocks. AST SpaceMobile, Inc. (NASDAQ:ASTS) and SoundHound AI, Inc. (NASDAQ:SOUN) are two of the most promising tech sector stocks according to analysts. Whereas, Visa Inc. (NYSE:V) is one of the most valuable financial companies in the world.
AST SpaceMobile, Inc. (NASDAQ:ASTS) is an American satellite designer and manufacturer that provides coverage to people who lie out of typical cell phone tower coverage. On November 21, Deutsche Bank reiterated a buy rating on AST SpaceMobile, Inc. (NASDAQ:ASTS) and upgraded its price target from $30 to $32. As of December 28, AST SpaceMobile, Inc. (NASDAQ:ASTS) has surged 34.27% over the past six months.
During the third quarter of 2023, 9 out of 910 hedge funds held AST SpaceMobile, Inc. (NASDAQ:ASTS). The total stakes of these hedge funds amounted to $32.66 million at the close of Q3 2023. As of September 30, Sander Gerber’s Hudson Bay Capital Management was the largest shareholder in AST SpaceMobile, Inc. (NASDAQ:ASTS) and held a position worth $3.99 million.
SoundHound AI, Inc. (NASDAQ:SOUN) is an audio and speech recognition company that enables businesses to utilize voice assistants. On December 7, SoundHound AI, Inc. (NASDAQ:SOUN) announced that it had signed a definitive merger agreement to acquire SYNQ3 Restaurant Solutions for $25 million. With the acquisition of SYNQ3 Restaurant Solutions, SoundHound AI, Inc. (NASDAQ:SOUN) plans to expand its AI customer service solution and take its market reach to more than 10,000 signed locations.
By the end of the third quarter of 2023, 10 out of the 910 hedge funds surveyed by Insider Monkey held positions worth $18.65 million in SoundHound AI, Inc. (NASDAQ:SOUN). On December 11, HC Wainwright & Co. analyst Scott Buck reiterated a buy rating for SoundHound AI, Inc. (NASDAQ:SOUN) with a price target of $2.25.
Visa Inc. (NYSE:V) is one of the leading financial services companies in the world. On December 15, Visa Inc. (NYSE:V) announced that it is set to acquire a majority stake in Prosa, a leading payments processor in Mexico. Through the majority acquisition of Prosa, Visa Inc. (NYSE:V) wants to accelerate its expansion of secure and innovative digital payments in Mexico. As per the agreement, Prosa will continue to work as an independent company, while Visa Inc. (NYSE:V) will work on the expansion of Prosa’s product offerings with new digital solutions. Visa Inc. (NYSE:V) continues to expand its fintech offerings and add new features to the platform. On December 18, Visa Inc. (NYSE:V) announced that it is expanding its Fintech Fast Track program beyond card issuance. The company wants to connect members to Visa Inc.’s (NYSE:V) real-time money movement platform, Visa Direct. Fintechs will be able to launch programs through their financial institutions via Visa Direct to enable transfers to eligible cards, bank accounts, and wallets worldwide.
These were a few leading companies from the technology and financial sectors. Now, let’s take a look at the states with the most millionaires per capita in the US.
15 States With The Most Millionaires Per Capita In The US
Our Methodology
To compile or list the states with the most millionaires per capita in the US, we first needed to have millionaires per capita for each state. We took the millionaires’ household per capita data from Phoenix Marketing International’s annual Phoenix Wealth & Affluent 2019 report. The data was available until 2019. We have ranked the states based on the ratio of millionaires to total households (HH), in ascending order. The ratio of millionaires to total households represents the total millionaire households per capita in each state against the total number of households.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using different consensus approaches, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Note: We took the US state’s GDP per capita from Insider Monkey’s 25 Richest US Cities by GDP Per Capita.
15 States With The Most Millionaires Per Capita In The US
15. Illinois
Millionaires to Total HH: 7.13%
Millionaire Households: 346,873
Illinois is one of the richest US states having a GDP per capita of $70,072. The US state’s ratio of millionaires to total households was 7.13% in 2019. With 346,873 millionaire households, Illinois is placed 15th among the states with the most millionaires per capita in the US.
14. Minnesota
Millionaires to Total HH: 7.43%
Millionaire Households: 167,206
Minnesota has a GDP per capita of $67,120 and millionaires to total households ratio of 7.43%. Minnesota has 167,206 millionaire households and ranks among the states with the most millionaires per capita in the US.
13. Colorado
Millionaires to Total HH: 7.48%
Millionaire Households: 170,223
Colorado has 170,223 millionaire households and a GDP per capita of $73,328. Colorado has a millionaires to total households ratio of 7.48%.
12. New York
Millionaires to Total HH: 7.52%
Millionaire Households: 570,456
New York is one of the richest US states having a GDP per capita of $91,050. New York’s ratio of millionaires to total households was 7.52% in 2019. With 570,456 total millionaire households, New York is ranked 12th among the states with the most millionaires per capita in the US.
11. Washington
Millionaires to Total HH: 7.85%
Millionaire Households: 233,155
Washington has a GDP per capita of $86,500 and millionaires to total households ratio of 7.85%. With 233,155 millionaire households, Washington is one of the states with the most millionaires per capita in the US.
10. Alaska
Millionaires to Total HH: 8.18%
Millionaire Households: 22,302
Alaska has a millionaires to total households ratio of 8.18% and a GDP per capita of $72,600. Alaska has 22,302 millionaire households and ranks among the states with the most millionaires per capita in the US.
9. Virginia
Millionaires to Total HH: 8.31%
Millionaire Households: 272,103
Virginia has a GDP per capita of $68,050 and 272,103 millionaire households. Virginia’s millionaires to total households ratio of 8.31% places it among the states with the most millionaires per capita in the US.
8. New Hampshire
Millionaires to Total HH: 8.47%
Millionaire Households: 45,758
New Hampshire has 45,758 millionaire households and a GDP per capita of $65,338. With a millionaires to total households ratio of 8.47%, New Hampshire is placed eighth among the states with the most millionaires per capita in the US.
7. California
Millionaires to Total HH: 8.51%
Millionaire Households: 1.14 million
California is a Western US state and has total millionaire households of around 1.14 million. California’s millionaires to total households ratio of 8.51% places it among the states with the most millionaires per capita in the US.
6. District of Columbia
Millionaires to Total HH: 9.12%
Millionaire Households: 29,506
The District of Columbia has the highest GDP per capita of $215,025 and 29,506 millionaire households. With a millionaires to total households ratio of 9.12%, the District of Columbia is placed sixth among the states with the most millionaires per capita in the US.
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Disclosure: None. 15 States With the Most Millionaires Per Capita in the US is published on Insider Monkey.
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