New York City has been crowned the richest city in the world, with a staggering 359,500 millionaires and 60 billionaires, according to a recent study. This finding comes as a surprise to many, considering the concerns of wealth flight and the impact of the Covid-19 pandemic on affluent populations. However, it seems that these worries have not diminished the city’s prosperity.
Over the past decade, New York’s millionaire population has seen a remarkable surge of 48%. This increase has propelled the city’s millionaire population to surpass the entire populations of Orlando or Pittsburgh. In terms of wealth, New York residents now hold more than $3 trillion, which is greater than the GDPs of Brazil, Italy, or Canada.
While New York has claimed the top spot, the Bay Area of California is not far behind. The Bay Area has experienced an 82% surge in its millionaire population over the past decade, with a total of 305,700 millionaires. Additionally, the Bay Area leads in billionaire population, boasting a remarkable 68 billionaires.
The United States as a whole is solidifying its position as the largest creator of millionaires and billionaires globally. In fact, the U.S. is home to 11 out of the top 50 richest cities worldwide. The surge in tech wealth over the past decade, coupled with the rise in the stock market and deal-making, has contributed to this record wealth creation. Furthermore, the fiscal stimulus implemented during the pandemic acted as a catalyst for wealth creation, particularly benefiting America’s top 1%, whose wealth surged by over 40%, as reported by the Federal Reserve.
Andrew Amoils, head of research at New World Wealth, emphasized the dominance of the U.S. in global finance, technology, and entertainment sectors as key factors contributing to its wealth. U.S. cities have significantly outperformed their western counterparts in terms of overall wealth and millionaire growth over the past decade.
While New York and the Bay Area have seen tremendous growth, some cities around the world have experienced a reversal of fortune. Tokyo, which held the title of the wealthiest city a decade ago, now sits at third place. The city has witnessed a 5% decline in its millionaire population, with 298,300 people classified as millionaires.
London, once considered the wealthiest city for many years, has slipped to fifth place. Factors such as Brexit, Russian sanctions, and other policies have slowed down wealth migration, leading to a 10% decline in London’s millionaire population over the past decade.
China has made its mark in the top 10 for the first time, with Beijing experiencing a 90% increase in millionaires over the past decade, totaling 125,600 millionaires. However, China’s slowing economy and wealth flight have caused a reversal in wealth creation, resulting in a 4% decline in its millionaire population last year.
On the other hand, Singapore has benefited from the flow of wealth out of China and has climbed two spots to fourth place in the rankings. The city-state has witnessed a remarkable 64% growth in its millionaire population, with 244,800 people now classified as millionaires. Singapore is predicted to surpass Tokyo’s position on the ranking very soon.
Los Angeles has also made strides, rising two places to claim sixth place on the list. The city has seen a 45% increase in the number of millionaires.
Juerg Steffen, CEO of Henley & Partners, attributed the main engine of wealth creation worldwide over the past decade to financial markets. The impressive gains in the S&P 500, Nasdaq, and Bitcoin have significantly boosted the fortunes of wealthy investors. Furthermore, advancements in artificial intelligence, robotics, and blockchain technology have opened up new opportunities for wealth creation and accumulation.
In conclusion, New York City’s position as the wealthiest city in the world, along with the Bay Area’s close proximity, highlights the dominance of the United States in global wealth creation. While other cities have experienced fluctuations, the U.S. continues to maintain its lead due to its strong presence in finance, technology, and entertainment sectors. The future of wealth creation seems promising as advancements in technology pave the way for new opportunities.
