Number of Millionaire Households Advances Just 2% in 2007 to 9.2 Million, Spectrem Group Reports
Households Worth $5 Million or More Post Smallest Gain Since 2002
CHICAGO, March 12 /PRNewswire/ -- America's millionaires are feeling the pinch. The number of U.S. households with a net worth of $1 million or more, not including primary residence (NIPR), grew just 2% in 2007 to 9.2 million, up from 9 million the year before, according to a new report, "Affluent Market Insights 2008," released today by Spectrem Group.
While the 9.2 million households does represent a record for millionaires, it comes on the slowest growth rate since 2003, when growth was zero. It also compares with advances of 8% in 2006, 11% in 2005 and 21% in 2004.
At the same time, Ultra High Net Worth households, those with a net worth of $5 million or more (NIPR), advanced 2% in 2007 to a record 1.16 million -- on the slowest growth since zero in 2002. This represents a significant slowdown from advances of 23% in 2006 and 26% in 2005.
"The substantial gains in the number of millionaire and Ultra High Net Worth households we've seen since the end of the dot-com bust has all but ground to halt. Even as both groups' ranks reached new highs in 2007, growth was practically flat. We had already tracked a steady decline in millionaires' investment optimism since mid-2007 on a variety of concerns including a slowing economy, rising energy costs and poor stock market conditions. It now appears those concerns have become a reality for the wealthiest tiers of the U.S. population," said George H. Walper, Jr., President of Spectrem Group and co-author with Spectrem Managing Director Catherine S. McBreen of the new book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008).
The report, "Affluent Market Insights 2008," is based primarily on a series of surveys of over 3,000 affluent households, defined as having $500,000 or more in investable assets, conducted throughout 2007 and insights from an online survey of over 2,400 millionaire households conducted in December 2007. The margins of error, respectively, for these studies are plus or minus 4.4 percentage points and plus or minus 2 percentage points.
Those interested in purchasing the Spectrem report, "Affluent Market Insights 2008," should contact Spectrem Group at 641 W. Lake Street, Suite 402, Chicago, IL 60661, (312) 382-8284.
About Spectrem Group: Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets. It integrates proprietary research with expertise in building business, marketing and M&A strategies. Spectrem professionals have held senior management positions at leading global companies. Through a collaborative process, they create and implement practical and profitable strategies that fit the cultures of client firms. Catherine S. McBreen and George H. Walper, Jr., Spectrem Group's Managing Director and President, respectively, are authors of the new book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008).