The number of millionaires in the United States saw a substantial increase last year, outpacing other countries and propelling North America back to the top spot for millionaire growth globally. According to a new report from French research firm Capgemini, the U.S. population of «high-net-worth individuals» with over $1 million in investable assets grew by an impressive 7.3% in 2023, reaching over 7.4 million millionaires. This represents an increase of approximately 600,000 individuals reaching the millionaire category.
This millionaire boom represented a bounce-back year for America’s wealthy after their net worth dropped in 2022. Capgemini notes that despite higher interest rates, key legislation like the Inflation Reduction Act, CHIPS Act, and the stock market’s late 2023 recovery were drivers behind the recorded wealth increases.
Worldwide growth and the thriving Tech stock market
On a worldwide scale, the total number of millionaires rose 5.1% to 22.8 million, with their combined wealth expanding 4.7% to $86.8 trillion. After North America, the Asia-Pacific region saw the second-strongest millionaire growth at 4.8%, followed by Europe at 4%, Latin America at 2.7%, and the Middle East at 2.1%. Africa was the only region to experience a decline of 0.1%.
The surging number of millionaires in the U.S., which helped reclaim the global growth lead from Asia-Pacific, was partly attributed to the stock market’s extraordinary performance, particularly in the artificial intelligence (AI) and technology sectors. The S&P 500 skyrocketed 24% last year, buoyed by investor optimism surrounding AI’s future.
AI chip supplier Nvidia led the charge with a staggering 239% gain, while tech giants Meta and Tesla involved in AI saw shares surge 194% and 102%, respectively. Goldman Sachs estimates global AI investment could reach as high as $200 billion by 2025.
The tech-driven stock rally not only minted new millionaires but also bolstered the wealth of existing ones. Ultra-high-net-worth individuals with over $30 million now number around 100,000 in the U.S., commanding a cumulative net worth of approximately $7.4 trillion. The combined wealth of all American millionaires tops an astounding $26 trillion.
This millionaire proliferation shows no signs of slowing in 2024 as the S&P 500 and Nasdaq hit new records, with AI leaders like Nvidia and Microsoft continuing their ascent. As transformative technologies capture investor enthusiasm, America’s millionaire class is increasing at an unprecedented rate.
