All articles tagged with #wealth migration
In 2025, the world's richest added a record $2.2 trillion, yet many ultra-wealthy individuals are increasingly leaving the US for Europe or other regions due to political, social, and economic concerns, reflecting a shift in perceptions of the American Dream despite the US's continued dominance in wealth creation and investment opportunities.
Alan Howard, co-founder of Brevan Howard Asset Management, has become a Swiss resident amid the UK's increasing taxes on the wealthy, joining other billionaires and investors relocating due to tax reforms under the Labour government. His move reflects a broader trend of wealthy individuals leaving the UK for more favorable tax regimes in Switzerland and Monaco.
A study by Smart Asset reveals that young and wealthy individuals in California, New York, and Illinois are leaving these states in favor of Florida, Texas, and New Jersey. California lost around 4,495 residents in the 26-35 age group earning at least $200,000 per year, while New York lost nearly 5,062 and Illinois lost 952. Florida emerged as the top destination, attracting 3,391 residents from this demographic. Despite the outflow, California and New York still have the highest number of wealthy young professionals compared to other states.
California has experienced a decline in population for the third consecutive year, with many of the state's wealthiest residents leaving. A study by MyEListing.com found that California lost over $340 million in IRS tax revenue in 2021 due to residents moving. High personal income tax rates and the high cost of living are cited as reasons for the wealth migration. Florida, Texas, and Arizona were the states that benefited the most from IRS tax income due to migration, while California, New York, and Illinois were the biggest losers.
Billionaire Chamath Palihapitiya suggests that Northeast cities like NYC and Boston are losing income due to political ideology, while the South is experiencing economic growth. Data from the IRS shows that southern states collectively added $100 billion in new net income from 2020 to 2021, while the Washington-New York-Boston corridor lost $60 billion. The migration of wealth and economic power to the South is attributed to factors such as warmer weather, lower taxes, looser regulation, and cheaper housing. Palihapitiya argues that "woke" policies also play a role in the migration, sparking a debate with fellow billionaire Mark Cuban. The ongoing migration rates and their underlying causes continue to be a topic of discussion.
China is expected to see a net loss of 13,500 millionaires in 2023, up from 10,800 in 2022, as the post-COVID economic rebound fizzles, according to the Henley Private Wealth Migration Report. Meanwhile, the US will see a net gain of 2,100 millionaires, up from 1,500 last year. The report also shows that Australia, the United Arab Emirates, and Singapore are among the top gainers of millionaires. The slowing growth of wealth in China, bans on Huawei technology, and worsening international relations are cited as reasons for the trend.