America’s ultra wealthy flock to new red state business hubs… as growth sputters in California and New York
America’s super rich are swapping Silicon Valley for Utah’s Silicon Slopes and Manhattan for Miami.
In the next five years, Republican states are set to see the largest influx of ultra high net worth individuals, according to a new report.
The analysis, from wealth intelligence firm Altrata, defines these people as those worth more than $30 million.
While the traditional wealth hubs of California and New York still lead in terms of the number of ultra wealthy Americans living there, they are lagging when it comes to growth.
Instead Florida is leading the way, with an estimated 8.8 percent yearly growth of super rich residents through 2030.
Utah is projected to see the second largest annual growth over the same period of 8.1 percent, while Texas is due to see a 7.9 percent yearly surge.
The ultra rich are throwing their money into these states as a result of attractive low-tax regimes, the rise in remote working, general lifestyle appeal and emerging technology and finance hubs in areas such as Miami, Austin and Salt Lake City.
A high-profile example of this shift in America’s wealth map was Elon Musk’s decision to relocate Tesla’s corporate headquarters from California to Texas in late 2021 — and now others are following his lead.
Florida is due to see the largest yearly growth of super rich residents – at 8.8 percent – as investors and entrepreneurs flock to Miami
Elon Musk moved Tesla’s headquarters from California to Texas in 2021, and now it seems others are following suit
Florida and Texas, in particular, have experienced rising inflows of ultra wealthy individuals and corporate activity over recent years, often from the more traditional wealth hubs of California and New York.
Household name companies, including Chevron, Charles Schwab and Playboy, have left California, with many blaming Governor Gavin Newsom’s ‘anti-business’ progressive policies.
However, Los Angeles still has the third highest number of ultra high net worth residents of all cities globally, at 11,680.
New York, meanwhile, has the most in the world at 21,380.
In the next five years, the Sunshine State is forecast to grow from a super rich population of 11,244 to 17,111, according to Altrata.
Since the pandemic, Miami has established itself as a hotspot for luxury real estate, while Florida in general is attracting investors and entrepreneurs for its ‘pro-business’ policies.
‘Key drivers (relative to other states) include favorable demographics, economic growth, alongside tax-planning reasons and entrepreneurial policies, all of which underpin the growth (as well as the formation) of businesses that are owned and/or run by the ultra wealthy (and those set to become ultra wealthy as a result),’ the report reads.
In Texas, which is also attracting big business as a result of Houston’s energy wealth and Austin’s growing tech sector, the number of super rich people is expected to grow to 27,383 by 2030.
Despite California having among the highest number of ultra rich in the US, some companies are fleeing the state and blaming ‘anti-business’ policies (Pictured: Governor Gavin Newsom)
The elite are throwing money into Texas, due to the thriving tech scene in Austin (pictured) and Houston’s energy wealth
Utah is projected to see 8.1 percent yearly growth in ultra rich residents through 2030 (Pictured: The Utah State Capitol in Salt Lake City)
Utah is home to a growing tech scene which has been dubbed ‘Silicon Slopes’ (Pictured: Adobe building in Lehi)
In Utah, the number of ultra wealthy residents is set to grow from 2,101 to 3,100 over the next five years.
While the total number remains small compared to other states, this represents a significant 8.1 percent growth.
This growth is a nod to the popular winter sports destination and expanding business services hub of Salt Lake City.
Adobe first opened an office in the city over a decade ago, and now there are over 1,000 big tech companies and startups operating in the city, which is being dubbed ‘Silicon Slopes.’
The burgeoning tech center of Scottsdale in Arizona has also been one of the fastest-growing ultra rich hubs in the US in recent years, the report noted, which it predicted would continue to 2030.
Other prominent hotspots include the Lake Tahoe area of Nevada and affluent regions of Idaho and South Carolina.
However, the report warns that the uncertain political and economic climate in the US could impact where the elite are investing their fortunes.
‘The Trump administration’s reordering of the political, legal and migratory environment could possibly prompt some ultra wealthy individuals to reassess the stability and attractiveness of their US-based investments,’ the report reads.
