The Millennial Millionaires Are Not Where You Think They Are
According to a recent report, the location with the highest number of resident millennial millionaires isn’t New York, California, or Florida… it’s northwest Michigan.
The report on wealthy millennials, which was issued by Coldwell Banker Global Luxury in collaboration with WealthEngine, took an in-depth look at millennials spending behaviors, lifestyles, and choices and turned up some unexpected findings.
According to Coldwell, millennial millionaires represent 2% of the United States’ millionaire population and 0.2% of the full population. Of this 0.2%, 93% have a net worth of being $1 million and $2.49 million dollars. Furthermore, 45% of the millennial millionaires are aged between 34 and 37, and 67% are married.
Interestingly, only 20% of the millennial millionaires were educated to college level, which is significantly lower than the 42% of millionaires as a general population. Further differences between millionaires and millennial millionaires can be observed in terms of car ownership. According to the report, the wealthier set among the younger generation opt for BMW 3 Series cars, while other millennials prefer Chevrolet Silverado cars.
In terms of homeownership, the millennial millionaires and millionaires exhibit relatively similar behaviors. A massive 94% of millionaires as a collective group are homeowners, while 92% of millennial millionaires own their properties. This is significantly higher than the general millennial population, of which only 63% are homeowners.
The report also unearthed some interesting information about where millennial millionaires are living: “Millennials tend to prefer markets that are more affordable — often in suburbs or second-tier cities, where their dollar will carry them further. Even if they have the money, they may still choose a non-traditional luxury neighborhood over the prestige of a traditional luxury neighborhood, if it means they can walk to the corner café.”
The report attributes the millennial millionaires’ interest in Traverse City to the revitalization that the area has witnessed in recent years. What’s more, luxury homes in the area can be secured for as little as $500,000.
Another finding worth mentioning is that millennial millionaires are a generous bunch. According to the report, 56% of wealthy millennials donate to charity on a regular basis. However, much of this money is given to political causes: “They are especially passionate about aligning with causes they care about, whether it’s for the environment or political parties,” the report disclosed.