The US no longer attracts as many millionaires as it did before the pandemic

USA is losing its charm as a country of residence for millionaires. Net inflows of high net worth individuals plunged more than 80% last year from pre-pandemic levels, driven in part by wealthy Americans “seeking new horizons abroad at unprecedented rates,” according to a report by Henley & Partners, a consultancy on immigration based in London.

“In the past, investment migration programs were primarily attractive to Russians, Chinese, Arabs, and developing countries with unattractive passports, limited visa-free access, and low economic mobility,” said Mehdi Kadiridirector of the firm for North America. “During Covid, that changed considerably. Most of our customers now come from developed countries.”

Since millionaires have the luxury of mobility, their commutes can be a barometer of the health of an economy or society, providing “an early warning sign about future trends in the country”said.

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In 2014, the US had the largest net inflows of net worth individuals, or those with wealth of $1 million or more, according to data through 2022 provided by Henley & Partners. Last year it fell to sixth place, behind United Arab Emirates, Australia, Singapore, Canada and Switzerland. The largest departures came from Russia, China and India.

“People keep coming, but there has been a big increase in people leaving” of the USA, said Andrew Amoilsresearch director of New World Wealth in johannesburgwho participated in the compilation of the report.

Many of those leaving are in their 50s and 60s, with some citing tax or safety concerns, he said. Delays in the EB-5 program for wealthy immigrants have also contributed to fewer millionaires coming to the US from certain countries, particularly ChinaAmoils said.

The US remains the largest wealth market with $65 trillion in private wealth, followed by China with $21.7 trillion, according to the report. In the US there are 770 billionaires, 9,630 residents with US$100 million or more and 5.3 million high net worth individuals.

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