In a classic tale of the poor get poorer and the rich get richer — a phrase coined by poet Percy Bysshe Shelley — new research from Point2, a division of Yardi Systems Inc. that follows real estate trends, shows that the number of ultra-wealthy households has quadrupled in the past five years.
Meanwhile, a report from ATTOM shows home prices in 99% 575 US counties are beyond the reach of the average income earner, who makes $71,214 a year. Yet, the study by Point2 shows that the number of households earning an income of at least $1 million quadrupled between 2017 and 2022
“The ‘typical’ millionaire homeowner is a 50-year-old chief executive or physician who lives in San Francisco or New York, owns a $1.8-million, 10-room, five-bedroom home and has three cars,” Point2 Senior Real Estate Writer Andra Hopuele writes in her report, which was compiled using data from the U.S. Census, among other sources. “Earning $1 million sounds like an impossible dream to many,” Hopuele goes on, “but more and more American families are doing it.”
Another surprising trend that came through in the data was that Generation Xers, or people born between 1965 and 1980, emerged in the lead with the most millionaire households. Nearly four in 10 (37.4%) millionaire homeowners are Gen Xers, followed by Baby Boomers, who were in the lead in 2017, but now comprise three among the 10 millionaire households (28.9%). Millennials came in third with two in 10, (19.7%) and Gen Z millionaire owners represent 10% of all ultra-high earners. Hopuele attributes this high share of Gen Zers - ages 12 to 24 - almost entirely to young people living with their millionaire parents.
“Although Baby Boomers used to boast the largest share of ultra-wealthy owners, younger generations are catching up and even overtaking them,” she goes on to point out.
In total, the U.S. added more than 100,000 additional households earning a seven-figure salary in the last five years, totaling 136,697 homes with 322,356 people living in them. That’s a 446% jump in five years.
“But, just like not all who wander are lost, not all who live in a millionaire owner-occupied household are millionaire homeowners (Gen Z young adults still living with their parents come to mind),” Hopuele writes. “That said, the financial and social advantages of being part of a household in the 99th percentile are undeniable.”
The number of households in other high-income brackets is also rising.
Wealthy owner households that earn $150,000 or more grew by nine million between 2017 and 2022, a 72% increase.
The New York-Newark-Jersey City metropolitan area takes the cake with the most millionaire households in the country, at 26,561. Los Angeles-Long Beach-Anaheim Calif. is next with 10,762.
In terms of the jobs these millionaires work, many are chief executives, judges, lawyers and physicians, according to the report. The list also includes software developers, engineers, and managers, athletes, data scientists, statisticians, insurance sales agents and inspectors.
“The average millionaire would also put their home at around $1.8 million, but this value differs greatly depending on the city,” Hopuele writes. “Millionaires living in San Francisco; Los Angeles; and San Diego estimate their homes are worth north of $2.5 million, whereas the ultra-rich who own homes in San Antonio-New Braunfels, TX; Pittsburgh; and Cincinnati believe their homes are worth less than $1 million.
