Austin Dethroned as Millionaires Flock to Arizona City

Newsweek

2 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
The desert city of Scottsdale, Arizona, has become the fastest-growing millionaire hub in the nation over the Texas capital, Austin, which only last year ranked first in Henley & Partners' list of U.S. metros attracting the ultra-wealthy.
The former pandemic boomtown of Austin, which has been experiencing a dramatic correction over the past couple of years, has fallen out of the top five in Henley & Partners' latest report on the fastest-growing wealth hubs in the U.S., though it remains one of the richest metros in the country.
Why It Matters
Over the last decade and especially in the years following the outbreak of the COVID-19 pandemic, Austin became a massively popular destination for both businesses and out-of-state movers attracted by the city's vibrant culture, thriving job market and high quality of life.
The city's appeal grew as Austin became known as a hub for tech giants such as Dell, Apple, Google and Tesla, attracting millionaires from all over the country. Many high-net individuals left expensive metropolises such as San Francisco, New York and Los Angeles to relocate to Austin, which combined the charm of a mid-size city with the opportunities traditionally found in bigger, much more expensive hubs.
But its status as a tech powerhouse now seems to be threatened by the uncertainty surrounding the sector, which is still going through significant workforce cuts, return-to-work policies and the growth of rival tech hubs such as Scottsdale.
What To Know
While Austin was the fastest-growing millionaire hub in the nation in Henley & Partners' 2024 report, this year it does not even feature in the top five. It has been dethroned by Scottsdale, which between 2014 and 2024 has seen its millionaire population grow by 125 percent.
Traffic and people cross the South Congress Avenue bridge, with the Austin skyline in the background, Texas.
Traffic and people cross the South Congress Avenue bridge, with the Austin skyline in the background, Texas.
Getty Images
The Arizona desert city now counts 14,800 millionaire residents, 64 centi-millionaires and five billionaires and is home to major tech businesses such as GoDaddy, Microchip Technologies, Avnet, Insight Enterprises and Onsemi.
It was followed by West Palm Beach, Florida, which grew its millionaire demographic by 112 percent in the same decade, and now counts among its total residents 11,500 millionaires, 78 centi-millionaires and 10 billionaires. The city has likely been benefiting from the high numbers of ultra-wealthy senior citizens retiring in the Sunshine State.
The Bay Area, which includes San Francisco and the Silicon Valley, was the third-fastest growing millionaire hub, having seen its millionaire population grow by 98 percent between 2014 and 2024. The area had 342,400 millionaires, 756 centi-millionaires and 82 billionaires.
In fourth place was another Florida city, Miami, which saw its millionaire demographics go up by 94 percent between 2014 and 2024. The city has 38,800 millionaires, 180 centi-millionaires and 17 billionaires. Same as West Palm Beach, Miami has likely benefited from the Sunshine State's status as a retirement haven and the lack of a state income tax.
It was followed by Washington, D.C., which grew its population of millionaires by 92 percent in that same decade to reach a total of 28,900, likely as wealthy individuals wanted to be close to the heart of U.S. politics. The city also has 97 centi-millionaires and 12 billionaires.
While Austin fell out of the top five fastest-growing millionaire hubs in the country, it was still the 10th wealthiest city in the country after New York City, the Bay Area, Los Angeles, Chicago, Houston, Dallas, Seattle, Boston and Miami. While some cities experienced a far bigger increase, Austin's millionaire population still grew by an impressive 90 percent between 2014 and 2024.
What People Are Saying
Andrew Amoils, head of Research at New World Wealth, which collaborated on the Henley & Partners' report, said in a press release: "America is the undisputed world leader when it comes to high-growth tech sectors such as software, microchips, online retail, internet hosting, social media, search engines and AI. As a result of this dominance, many tech entrepreneurs choose to move to the country in order to take their businesses to the next level."
He added: "While the Bay Area remains the epicenter of this innovation ecosystem and the top global destination for wealthy tech entrepreneurs, we're also seeing a broader migration trend. Trade tensions and shifting economic priorities are driving HNWIs towards more business-friendly environments, with cities like Tampa, Salt Lake City, Denver and Santa Fe emerging as attractive alternatives thanks to their affordability, lifestyle appeal, and investment potential."
He told Realtor.com: "Austin's tech sector has slowed down over the past couple of years. This may be linked to the emergence of new tech hubs such as Tampa and Scottsdale. During the [COVID-19] pandemic, Austin was a hub of activity for out-of-state movers, but this trend has shifted as return-to-work policies and headwinds in the tech sector mean Austin has lost some of its luster."
Henley & Partners said in a recent report of Austin: "While wealth growth in the city has slowed over the past couple of years, it remains very impressive when viewed over the past decade as a whole."
Realtor.com senior economic research analyst Hannah Jones said in a recent article commenting on the report: "Scottsdale has grabbed the attention of high-earning households over the last decade as luxury buyers flock to the area in search of sunshine and access to the area's amenities, such as golf courses and resorts."
What Happens Next
While the U.S. remains attractive to investors, Henley & Partners' report warns that the ultra-wealthy are increasingly eyeing opportunities abroad amid growing economic uncertainty around the President Donald Trump's administration.
The company reported a 183 percent increase in the first quarter of 2025 compared to the same period last year, in inquiries from U.S. nationals for alternative residence and citizenship, as high-net individuals seek to diversify their portfolio and protect their assets from volatility in the markets.
"In an era of rising geopolitical volatility, wealthy individuals and families are reassessing where, how, and what they own," Jacob Shapiro, head of geopolitical & macro research and senior client relationship manager at Bespoke Group, said in the Henley & Partners' USA Wealth Report.
"The age of unchallenged U.S. dominance is over, replaced by a multi-polar world marked by fiscal recklessness, military confrontation, and political instability. As America's golden age of investment fades, the country's wealthiest are moving their money—and their lives—abroad in record numbers. Global diversification is no longer optional, but essential, for preserving wealth, lifestyle, and legacy in a world where opportunity is shifting beyond U.S. borders."
This could mean further losses for cities like Austin—as well as Scottsdale. But Henley & Partners believes that for most wealthy individuals in the U.S., permanently leaving the country is not what they want.
"Most American clients we engage with are primarily wanting a Plan B or option to relocate if they need or want to but almost all of them say they don't want to leave the US, even temporarily," Basil Mohr-Elzeki, head of North America at Henley & Partners, told Newsweek.
"They just want to have something in place so that they have the option if it becomes necessary."