London-based immigration consultancy Henley & Partners released its latest Wealth Report, which found that contrary to the sentiment prior to the Covid-19 pandemic, the world’s wealthy no longer want to establish their residencies within the United States.
The report’s data showed that over the last year, the inflow of high-net-worth individuals into the country fell by more than 80% compared with pre-pandemic levels. In 2022, the inflow figure fell to only 1,500 millionaires, compared to as many as 10,800 between 2013 and 2019. The report noted, “the country is losing its luster among migrating millionaires” and “the ‘American Dream’ is now on life-support.”
The report also detailed that the countries of origin of the high-net-worth individuals have changed. Previously, the investment migration program applicants were primarily from “developing nations who had weak passports, with limited visa-free access and low economic mobility,” however now, the majority are from developed countries.
The analysts note that normally the rich are a measure of the health of a nation’s economy, since they have the ability to move around the world freely. As a result, their migration patterns provide “an early warning signal into future country trends.”
An examination of the data shoes that in 2014, the US had the biggest net inflows in the world, of individuals with a net worth of $1 million or more. However by 2022, the US had fallen to sixth place, behind the UAE, Australia, Singapore, Canada and Switzerland.
Andrew Amoils, head of research at New World Wealth, which assisted in compiling the report noted, “People are still coming, but there’s been a big increase in people who are leaving,”
The report pointed out that lately more wealthy Americans were moving overseas, “seeking greener pastures abroad at an unprecedented rate,” with some justifying their moves by citing concerns over taxes or securuty.
Within the US, the report noted there was a shift in movement patterns as well, with wealthy Americans flowing toward smaller cities, as large megapolises such as Chicago and New York saw massive outflows of millionaires due to tax and security issues.
Despite its declining status, Henley & Partners noted the US remains the largest wealth market, with a worth of $65 trillion, and home to 770 billionaires, 9,630 individuals worth $100 or more, and 5.3 million high net worth individuals.
The next largest wealth market was China,, with $21.7 trillion in private wealth.
