The choices of the wealthy population about where the rich people live and how they live are continuously changing in a world of volatile politics, uncertain economic prospects, and rapid social and technical change. Additionally, the city’s appeal continues to be strong, whether for professional, cultural, familial, or lifestyle reasons, which fuels demand in the luxury residential real estate market around the world.
Who falls in the category of rich people?
According to Investopedia, those with investable assets of at least $30 million are considered ultra-high-net-worth (UHNW) individuals. However, Credit Suisse defines UHNW individuals as having a net worth of at least $50 million in its 2022 Global Wealth Report.
The Credit Suisse global wealth study estimated that by the end of 2021, there was a projection of $463.6 trillion in total global wealth and a record-high number of UHNW people. According to Credit Suisse, there are about 218.200 UHNW people in the world, and 140,000 of them reside in the United States. China, Germany, and Canada are other nations with large populations of extremely wealthy people (albeit not nearly as many).
Where do the rich people live?
Of course, the wealthy don’t all reside in the same place. An UHNW person may live in New York and travel to Aspen for skiing in the winter or Paris in the fall for shopping. Altrata, a company that tracks the wealthy, looked at the many properties owned by persons with a net worth of at least $30 million to determine which cities have the highest number of ultra-wealthy people.
According to Altrata’s most recent report, Residential Real Estate 2023: Spotlight on the World’s Leading Markets for the Wealthy, this residential footprint of the ultra-wealthy is important because, even if it is only for a few days or weeks in a given year, any type of residential presence of such wealthy people represents an opportunity for businesses looking to engage and connect with the world’s wealthy.
Altrata used the WealthX database, a comprehensive collection of curated research and intelligence on the wealthy, to locate where the wealthy own private primary and secondary houses in order to identify the locations with the most ultra-wealthy (in this case, individuals with at least $30 million). The owner’s primary residence is the place where they spend the most of their time annually. (The property owner’s main place of business is frequently located in the city of principal residence.) A secondary home is one that the same person owns in addition to their primary residence.
Top 10 cities where the rich people live
Here are the cities which are the most popular among the ultra-wealthy people, according to Altrata’s analysis.
1. New York
21,714 UHNW people have either a primary or secondary residence.
2. London
15,907 UHNW people have either a primary or secondary residence.
3. Hong Kong
15,175 UHNW people have either a primary or secondary residence.
4. Los Angeles
13,194 UHNW people can be found having a primary or secondary dwelling. According to the survey, the majority of Los Angeles’ ultra-wealthy (82.3%) did not inherit their fortune. Nearly 2% of people own yachts, while more than 10% own jets. Nearly 85% of Los Angeles’ ultra-rich are men.
5. Miami
10,831 UHNW people have either a primary or secondary residence.
6. San Francisco
9,221 UHNW people can be found having a primary or secondary dwelling. Northern California stands out regarding the population and density of the ultra-wealthy. One ultra-high net worth individual owns a residence in San Francisco for every 505 city residents.
7. Beijing
8,923 UHNW people have a primary or secondary residence, according to data.
8. Singapore
7,471 UHNW people have either a primary or secondary residence.
9. Chicago
6,506 UHNW people have either a primary or secondary residence.
10. Washington, D.C.
5,732 UHNW people have either a primary or secondary residence.
Dubai
830 UHNW people have a primary or secondary residence, according to data. Dubai, a popular tourist destination and expat hub, is one noteworthy city despite not being included in the ranking. Compared to other cities, Dubai’s ultra-wealthy homeowners are typically younger, and 91% of them are male.
The survey also examined cities’ UHNW densities, or the proportion of ordinary citizens to ultra-wealthy residents or second-home owners. According to the report, a city’s character, cultural past, and business focus can frequently be seen in the large concentration of ultra-rich people there. Prime real estate, whether it is residential, commercial, or retail, can also have an impact.
Cities where the highest concentration of rich people live
Monaco
The highest concentration of ultra-rich people lives in Monaco. One UHNW person (as a primary resident or with a second residence) lives in the city-state on the French Riviera for every 39 people. 5.6% of these super-wealthy individuals own jets, while over 10% own yachts.
Aspen
There are 67 city dwellers for every UHNW primary or secondary inhabitant. The ultra-rich have a significant presence in Aspen, which has the highest population of UHNWs in the United States. According to the report, the little mountain community in Colorado has long been a haven for the wealthy, with one UHNW person living there (either as a primary resident or, more likely, as a second-home owner) for every 67 locals. This is almost 15 times more densely populated with ultra-rich people than New York.
Geneva
There are 213 city dwellers for every UHNW primary or secondary inhabitant. The density of the ultra-rich is highest in Geneva and Zurich, the two largest cities in Switzerland. The nation provides a high standard of living, a tax system that benefits the wealthy, political stability, access to elite universities, and outdoor activities.
