When you picture America's millionaires, you might think of sprawling Silicon Valley estates or Manhattan's glittering high-rises. However, the state with the highest concentration of millionaires isn't California or New York – it's New Jersey, according to Statistica research published in August 2024. Yes, the Garden State has claimed the top spot, with 9.76% of its households worth $1 million or more.
If you're wondering how that number stacks up, that's approximately 246,058 millionaire households spread across New Jersey's bustling suburbs, beach towns and historic cities.
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What's fueling all this wealth in New Jersey? The state's unique blend of high-paying industries, proximity to major urban centers and high standard of living create a sort of millionaire-friendly environment. It's a commuter haven for high-income earners working in New York and Philadelphia and it boasts a strong financial and pharmaceutical sector, with major companies like Johnson & Johnson headquartered there. For these reasons, New Jersey has a way of turning ambitious earners into millionaires.
New Jersey didn't win by much, though – it narrowly edged out Maryland, which has 9.72% of its households in the millionaire club. Among the top three is Connecticut, where 9.44% of households are millionaires. These states have something in common: they're all relatively small, densely populated and benefit from proximity to large economic hubs. This combination seems to create a perfect recipe for household wealth.
Now, why don't California or New York lead the pack? While these states have the largest number of millionaires, their populations are so vast that they don't make up as high a percentage of households. For example, California has over 1.1 million millionaire households, but with a population nearing 40 million, they're a smaller slice of the pie than New Jersey. New York is similar – it's brimming with wealth but has enough households to diminish its millionaires-per-capita ranking.
For those living in New Jersey, this statistic might feel a bit surprising – after all, the state has a high cost of living and some of the steepest property taxes in the country. But in many ways, these factors contribute to its millionaire density. High property values can inflate net worth quickly, especially for homeowners who've held on to properties for decades. Many affluent residents are clustered in areas like Bergen County, where median home prices are well above the national average.
New Jersey also consistently has the highest average property tax rates in the United States. The exact margin by which New Jersey exceeds the second-highest state can vary year by year, but it is significant.
- New Jersey’s Average Property Tax Rate: Approximately 2.21% of a property’s assessed value, depending on the specific municipality.
- Second-Highest State (Illinois): Around 2.05%.
The Garden State's blend of wealthy commuters, high-paying industries and sky-high real estate has earned it the title of the millionaire capital by percentage. So, next time you're inching along the Garden State Parkway, remember – you might be bumper-to-bumper with more millionaires than anywhere else in the country.
And if all this millionaire talk has you rethinking your financial goals, it might be worth chatting with a financial advisor. After all, whether you're aiming for millionaire status or just some savvy financial planning, getting advice could be your ticket to a little extra wealth.
This story has been previously reported and updated.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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