Findings from Phoenix Marketing International’s Millionaires Report Reveals Broadening Wealth Gap in the U.S.
May 28, 2020
This article was featured in Kiplinger.
Rhinebeck, NY—Global Advertising and Brand Specialist Phoenix Marketing International (Phoenix MI) has announced its annual ranking of millionaires by state with the 2019 Millionaires Report. The new results from their Wealth & Affluent Monitor show New Jersey ranking #1 for the second year in a row with 9.76% of its households being millionaires, followed closely by Maryland, who trails New Jersey by only .04%.
Though the rankings have generally remained consistent year over year, the new report shows that the ratio of millionaire households in wealthy areas is going up, while percentages of the bottom-ranked states remain steady; this indicates that the wealth gap in the U.S. continues to grow.
“This year’s W&AM Millionaire Rankings shed interesting light on the overall positive health and trajectory of the U.S. economy observed throughout 2019, highlighted by strong growth in the total number of millionaire households nationwide, for the eleventh-consecutive year”, says Carl Uttaro, VP of Financial Services Research at Phoenix MI.
The overall economy was strong throughout 2019, which likely contributed to the top states having the highest percentage of millionaire households recorded with this report. The total number of millionaire households in the U.S. continues to grow as well, with a total number of over 125 million.
“However, while the total number of HNW households grew, these increases were largely seen in the wealthiest states, reinforcing the broader ongoing wealth-gap issues the country faces,” continued Uttaro. Millionaire ratios have gone from less than 8% to nearly 10% on average in the top-five states over the last two years while remaining relatively flat in lower-ranked areas.
Arizona, Idaho, Indiana, and South Carolina all moved up four spots in 2019 to rank #25, #43, #39, and #37, respectively; Georgia and Nevada also moved up three places each to land at #24 and #32.
Wyoming suffered its worst decline yet, falling 11 spots to land at #35 overall, continuing a downward trend since 2017 when it ranked 15th. Louisiana also saw a significant fall of 8 spots to #47, while Washington D.C., Kansas, and South Dakota all dropped four places to #6, #30, and #40, respectively.
It is still unclear how the COVID-19 pandemic will affect the economy in 2020, as much of it will depend on how people react (if investors panic and pull out of the market, thus taking a hit to their net worth, or if they try to ride out the bear market). Overall, the pandemic will undoubtedly hurt the U.S. economy, and the actual percentages of millionaires in the country might drop, though state rankings may not be as largely impacted.
As the coronavirus cases grow worldwide, Phoenix MI is committed to sharing as much information as possible around its effects on consumer behavior, sentiment, and the overall advertising landscape. Check out our latest findings and insights on COVID-19.
To download the 2019 Millionaires Report, please click here.
About Phoenix Wealth & Affluent Monitor
The Phoenix Wealth & Affluent Monitor is a syndicated marketing research platform that tracks the needs, attitudes and behaviors of affluent and High Net Worth individuals in the U.S. and Canada. Market-sizing extracts provide the number of affluent and High Net Households in the U.S. by state. State extracts provide market-sizing estimates for eight affluent and HNW market segments, for the overall state and by Core-Based Statistical Areas (CBSAs) within each state. Market-sizing extracts are available for purchase.
About Phoenix MI
Phoenix MI is one of the Top Research Firms in the U.S. (GreenBook Market Leaders Report) and is one of the fastest-growing Market Research firms in the world. Operating in all major industries, Phoenix utilizes modern technology, innovative research techniques, and customized approaches to help our clients elevate their brand, refine their communications and optimize their customer experience. Founded in 1999, Phoenix has over 400 employees across seven offices in the US, as well as offices in Hamburg, Shanghai, Mexico City, and London. Learn more about how Phoenix can be put to work for your business at phoenixmi.com.Back to Explore