America Is Minting Lots of Cash-Strapped Millionaires

The number of millionaire households in the U.S. has grown to over 24 million, comprising nearly one-fifth of all households, with a third of these new millionaires emerging since 2017. This substantial increase in wealth is primarily driven by the appreciation of home values and the strong performance of the stock market, indicating significant asset-based wealth creation.

Analysis

America Is Minting Lots of Cash-Strapped Millionaires Millionaire households are on the rise, but much of their wealth is in hard-to-reach assets At the height of the Gilded Age, there were 4,047 millionaires in the US, according to an 18-month investigation by the long-gone New-York Tribune, which listed each by name in a special edition published in 1892. Today the number of millionaire households is more than 24 million, or almost one in five US households, according to a Bloomberg analysis of government survey data through 2023. Fully a third of those modern millionaires have been minted since 2017, as home values and the stock market surged. The U.S. has witnessed a significant surge in millionaire households, now exceeding 24 million, or almost one in five US households, according to a Bloomberg analysis through 2023. This rapid wealth creation, particularly with a third of these millionaires minted since 2017, is primarily attributed to rising home values and a strong stock market performance. This trend indicates that wealth accumulation is heavily tied to asset appreciation, particularly in real estate and public equities. The substantial increase since 2017 underscores a period where market and housing gains have been primary drivers of household net worth, rather than solely income-based growth. While indicating significant wealth creation, this analysis primarily focuses on the quantitative increase in millionaire households. The data highlights a macro-economic shift fueled by asset inflation, which may have broader implications for consumer spending and savings patterns among this demographic.

Key Decisions for Investors

• Investors should closely monitor trends in real estate and equity markets, as sustained appreciation in these asset classes continues to drive household wealth formation.
• Consider how this asset-based wealth growth impacts sectors like luxury goods, wealth management, and specific segments of the housing market.
• Evaluate the potential for increased demand for financial planning services and alternative asset investments from this expanding demographic of new millionaires.