16/02/23

CITIZENSHIP AND RESIDENCY: Fewer global HNWIs moved to the US in 2022, says new report.

As published on zawya.com, Thursday 16 February, 2023.

Fewer global millionaires chose to move into the USA in 2022 even as wealthy Americans are seeking greener pastures abroad, new data showed, with experts saying the trend showed the 'American Dream' is now on life-support.

The first “USA Wealth Report”, published by investment migration specialists Henley & Partners in partnership with wealth intelligence firm New World Wealth, also said that there is a significant internal movement of high-net-worth individual (HNWIs) currently underway within the country. Cities such as Austin, Scottsdale, Greenwich, and Miami are gaining millionaires, while the big wealth hubs of Los Angeles, Chicago, and New York City are losing them.

The data showed a notable drop in net inflows of millionaires to America in 2022 to 1,500, when compared with the period from 2013 to 2019 when net inflows of millionaires fluctuated between 6,400 to 10,800 annually.

America is the world's largest wealth market by a substantial margin, accounting for an extraordinary 32% of global wealth and 36% of the world's dollar millionaires. The USA is also home to the two largest stock markets in the world (the NYSE and the Nasdaq) as well as hosting nine of the top ten largest companies globally by market cap. The wealth held in New York City alone outstrips that of most G20 countries.

In terms of private wealth outflows, Henley & Partners' Head of North America, Mehdi Kadiri, says the firm received the most enquiries from US citizens on record in 2022 (a 447% increase from 2019) when, for the first time, Americans ranked highest of all nationalities worldwide applying for residence and citizenship by investment programs.

"To meet this significant and growing demand from US investors, Henley & Partners has opened three American offices this year, in the wealth hubs of Los Angeles, Miami, and New York City."

New York City takes the crown as the wealthiest city in the US (and the world) with 340,000 millionaires, followed by the Bay Area (285,000), Los Angeles (205,400), Chicago (124,000) and Houston (98,500).

When it comes to America's fastest growing wealth hubs, five cities have experienced millionaire growth of more than 70% in the past decade. Frontrunner Austin's millionaire population shot up by 102% between 2012 and 2022, and the city now boasts 30,500 resident high-net-worth individuals worth USD 1 million or more. West Palm Beach grew by 90% (home to 9,400 millionaires), Scottsdale by 88% (with 13,900 millionaires), Miami by 75% (with 38,000 millionaires), and Greenwich & Darien by 72% (with 11,900 millionaires).

Meanwhile, a Henley & Partners report in September last year that the millionaire populations in Dubai, Abu Dhabi and Sharjah jumping double digits to reach close to 100,000 this year.

In the six months to June 30, the total number of HNWIs with fortunes of at least $1 million rose by 18% to 67,900 in Dubai, making the emirate on track to break into the world's top 20 wealthiest destinations by 2030.

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