Recent data unveils a surprising trend: amidst the challenges of the pandemic, the city’s millionaire population has surged, painting a vibrant picture of resilience and economic dynamism. Join us if we drive into the numbers and narratives that illuminate this intriguing story of New York City's affluent community, reshaping perceptions and revealing the intricate dynamics of wealth and migration in one of the world's most iconic metropolises.
The most recent data shows a surge in millionaire households in New York City, largely due to the prosperous financial markets of 2021, compensating for the decline in high earners during the pandemic. Between 2020 and 2022, a robust economy facilitated the creation of 17,500 new millionaire households, far exceeding the net loss of 2,400 millionaires who migrated during the same period, according to a report by the Fiscal Policy Institute.
Despite concerns of a wealthy exodus during the pandemic, New York isn't struggling to retain its affluent residents, notes FPI Executive Director Nathan Gusdorf. The surge in millionaire households is attributed to the remarkable financial market performance in 2021, with tax filers earning over $1 million collectively experiencing a 40% year-over-year income increase, totaling $407.5 billion, as per FPI.
Contrary to popular belief, most high earners leaving New York didn't relocate to low-tax states but moved to other high-tax states like Connecticut, New Jersey, and California. The report highlights that 73% of the top 1% of earners who departed New York relocated to another high-tax state.
Beneficial for the environment, advantageous for New York City, and influential for Billionaires' Row, where these changes also exert their impact.