Where do advisors go to find prospective high-net-worth clientele?
Big cities have always attracted a higher percentage of HNW individuals, but for advisors looking to get in on the ground floor with such clients, so to speak, it may be better to target a smaller but growing community, rather than trying to break into a larger and more well-established one.
Using exclusive data from the global wealth intelligence firm New World Wealth, the study tags Austin, Texas, as the fastest growing U.S. city for HNWIs (14% YTD), followed by Houston (6%) and West Palm Beach, Fla. (6%). Surprisingly, traditional strongholds of wealth, such as New York (-12%) and Los Angeles (-6%) populate the bottom portion of the top 15, losing a not insignificant segment of their HNWIs to other cities across the country and abroad.
According to Dr. José Caballero, senior economist at the IMD World Competitiveness Center in Switzerland, quality of life is a fundamental driver of global mobility, and for business executives, high living standards and effective institutions are significant drawcards.
“Viewing these cities and regions through the lens of the 2021 IMD-SUTD Smart City Index (SCI) data while focusing on pertinent aspects of quality of life, such as governance, inclusiveness, talent development, entrepreneurship, public safety, healthcare, the environment and cultural and leisure activities, provides fascinating insights into where they are succeeding, and what could be drawing investors to congregate in certain metropolises.”
Here are the top 15 American cities that are gaining and losing the most HNWIs.