The US private wealth sector is constantly evolving, driven by economic shifts, generational changes, and global influences. In this article, we consider the latest insights from the ‘USA Wealth Report 2024‘ by Henley and Partners, shedding light on the key trends shaping the country’s wealth management sector.
The US remains the top wealth hub
The US remains the global epicentre of wealth, boasting an impressive $67 trillion in liquid investable wealth this year. With 5.5 million millionaires, 9,850 centi-millionaires, and 788 billionaires, the nation ranks first globally across all these categories. Notably, the US stays a magnet for affluent tech entrepreneurs and engineers, attracting talent from Asia, Europe and the UK. This was further backed by the latest release of the Forbes Billionaires list 2024, which lists the US as the country with the most Billionaires.
The wealthiest US cities
New York City retains its crown as the wealthiest city in the US, followed closely by the Bay Area, Los Angeles, and Chicago. The Bay Area, in particular, has witnessed a remarkable surge in the millionaire population, growing by 82% from 2013 to 2023. Additionally, Texas‘s state capital, Austin, has experienced the highest millionaire growth rate at an impressive 110%.
Gen Z’s rising wealth
A significant generational shift is underway as Gen Z in the US accumulates substantial wealth through inheritance, investments and entrepreneurship. The ongoing wealth transfer is leading to an influx of wealth into this generation. According to the ‘Wealth Inequality by Age in the Post-Pandemic Era‘ report by the New York Federal Reserve, millennials and Gen Z have experienced the largest percentage increase in wealth since 2019. This phenomenon underscores the importance of proper succession planning for Family Offices.
Increasing demand for dual citizenship
Demand for dual citizenship and alternative residency is soaring among US’ affluent. Wealthy Americans are increasingly recognising the advantages of secondary passports, not just as a travel bonus but as a core element of wealth management. This trend points to a growing appreciation for the mobility and security that an additional nationality offers, such as the potential for visa-free entry to the European Union. For these high-net-worth individuals, a second passport also doubles as an insurance policy, offering stability amid domestic uncertainty and expanding access to world-class healthcare and education for their families. Tailored for wealth preservation and lifestyle enhancement, dual citizenship is fast becoming a staple in the portfolio of the American elite.
The US continues to reign supreme as a global wealth hub, with notable shifts in wealth distribution among different demographics and regions. As the wealth management and Family Office landscape evolve, staying ahead of these trends is crucial for both industry professionals and affluent individuals.
As the wealth and number of Family Offices in the region grow, so does the demand for Family Office professionals. Agreus is an established full-service resources and recruitment consultancy dedicated to working exclusively with Family Offices. We have established a strong presence in the US and have worked with many US-based Family Offices over the years. We are well-positioned to support your recruitment needs in the US. For a more tailored conversation, please do not hesitate to get in touch.