State ranking of millionaires
In 2016, there were few changes among the top 10 states ranked by the ratio of millionaire households to total households. The top 10 states are:
- Maryland (7.55%) – remained #1, where it has been since 2011
- Connecticut (7.4%) – remained #2, unchanged in 2016
- New Jersey (7.39%) – moved up one place in 2016
- Hawaii (7.35%) – declined one place in 2016
- Alaska (7.15%) – unchanged from 2015
- Massachusetts (6.98%) – up one place from 2015
- New Hampshire (6.82%) – up one place from 2015
- Virginia (6.64%) – unchanged from 2015
- District of Colombia (6.32%) – up one place from 2015
- Delaware (6.4%) – down one place in 2016
A strengthening economy and employment expansion has contributed to rising personal wealth in some states, while others, hit hard by the recession and their reliance on certain sectors, are losing ground or recovering more slowly. The states with the greatest gains in the rankings are Utah (#17), Michigan (#29), Arizona (#30 and Ohio (#31), each of which rose five places in 2016 from 2015.
The biggest decline in the ranking was New Mexico, which dropped 11 places, continuing a three-year decline in ranking from #27 in 2013 to #43 in 2016, reflecting the impact of a depressed oil and gas industry on the state’s economy. South Dakota and Vermont both dropped seven places to #33 and #19, respectively, while Maine dropped six places to #35.
An analysis by Phoenix reveals Washington D.C., which ranked #9 in 2006, dropped to #20 at the outset of the financial crisis but has bounced back to its pre-recession ranking at #9 in 2016.
Generational Wealth and Millennials Rising
Approximately 70 percent of the wealth and affluent market is comprised of Americans age 52 or older who have at least $100,000 in investable assets. Baby Boomers account for more than half (55%) of the market while the Silent Generation represents 15 percent. Approximately 13 percent of the wealth and affluent market now is composed of the Millennial generation, who are age 36 or younger. They are gaining on the members of Generation X, which make up the remaining 17 percent of the market, and who are faced with financial challenges of aging parents and education costs for their children.