A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide for high-net-worth investors and consumers. Register to receive future issues, directly to your inbox.
According to a new report, the United States has quickly overtaken China as the world's No. 1 place for millionaires and billionaires.
There are now more than 5.5 million Americans with liquid investable assets of more than $1 million, 62% more than in the last decade and well above the global growth rate of 38%, according to the Report on US Wealth 2024 by Henley & Partners and New World. Can.
In the last five years, the population of millionaires in the United States has grown 35%, almost twice as fast as that of China. The United States is now home to 37% of the world's millionaires, up from 35% in 2018.
The divergence grows even more at the top of the wealth ladder. The United States has 9,850 centimillionaires (those worth $100 million or more) compared to China's 2,352. The United States has about 788 billionaires compared to China's 305.
“The United States remains the world's undisputed leader in private wealth creation and accumulation,” according to the report.
Dominic Volek, head of Henley's private client group, said strict Covid lockdowns in China, coupled with increased government intervention in the private sector, have slowed growth in wealth creation.
“China has certainly slowed down a lot because of these elements and the United States has benefited,” he said.
The shift from China to the United States is also reflected in wealth migration patterns. Some 13,500 net Chinese millionaires left China in 2023, a new record. The United States had a net influx of 2,200 millionaires in 2023 and a projected influx of 3,500 in 2024, according to the Henley report.
“The United States remains a major draw for wealthy engineers and technology entrepreneurs, especially from Asia, Europe and the United Kingdom,” the report says.
America's leadership in wealth creation is extending to spending and investment. A report from UBS and Art Basel reveals that the United States is the world leader in art sales, representing 42% of sales by value. The United States also leads the world in sales of the most expensive works.
Bain now predicts that China will account for only 35% to 40% of global luxury goods consumption by 2030, only slightly above current levels. Overall luxury spending in China is about 40% below where it was in 2019, according to Bain. Luxury sales in the United States last year totaled $80 billion, compared to $52 billion in China, Bain found.
While analysts and economists say China will remain a major source of luxury and wealth growth for years to come, the United States has become both the dominant market and source of growth for the high-net-worth economy.
“The wealth creation opportunities in the United States are second to none globally,” Volek said.
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