A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to wealthy investors and consumers. Sign up to receive future issues straight to your inbox.
A new report shows that the United States has quickly overtaken China as the world’s largest destination for millionaires and billionaires.
Today, more than 5.5 million Americans hold more than $1 million in liquid investment assets, up 62% over the past decade and well above the global growth rate of 38%, according to data 2024 US Wealth Report from Henley & Partners and New World Wealth.
Over the past five years, the U.S. millionaire population has grown by 35%, almost twice as fast as China’s. The United States now houses 37% of the world’s millionaires, up from 35% in 2018.
At the top of the wealth ladder, the disparity widens even further. There are 9,850 centimillionaires in the US – those worth at least $100 million – compared with 2,352 in China. There are approximately 788 billionaires in the US and 305 in China.
“The United States remains the world’s undisputed leader in the creation and accumulation of private wealth,” according to the report.
Dominic Volek, head of the private client group at Henley, said China’s stringent Covid lockdowns, combined with increased government intervention in the private sector, had slowed growth in wealth creation.
“China has certainly slowed down significantly 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. In 2023, 13,500 Chinese net millionaires left China, a new record. Henley’s report shows that there was a net influx of 2,200 millionaires into the United States in 2023, and a net influx of 3,500 millionaires was projected in 2024.
“The United States remains a top destination for wealthy tech entrepreneurs and engineers, especially from Asia, Europe and the United Kingdom,” the report says.
America’s leadership in wealth creation translates into spending and investment. AND report from UBS and Art Basel states that the United States leads in global art sales and accounts for 42% of sales by value. The United States is also the world leader in sales of the most expensive works.
Bain currently predicts that China will account for just 35-40% of global luxury consumption by 2030, which is only a modest increase from current levels. According to Bain, overall luxury spending in China is about 40% lower than in 2019. Bain found that U.S. luxury sales last year were $80 billion, compared to $52 billion in China.
While analysts and economists say China will continue to be the main source of growth in luxury and wealth in the coming years, the United States has become both the dominant market and source of growth for the affluent economy.
“The opportunities for wealth creation in the U.S. are unmatched anywhere in the world,” Volek said.
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