The distribution of wealth in the United States is constantly evolving. A recent article (posted above) reveals that over the past decade, there has been a significant shift in the geography of wealth. While major cities like New York and Los Angeles continue to have high concentrations of wealth, smaller cities and rural areas are now seeing a larger share of America’s wealth.
One of the driving factors behind this shift is the rise of technology and the growth of remote work. The pandemic accelerated the trend of people moving away from traditional urban centers, as the ability to work remotely gave them greater flexibility to choose where they live. This shift is reflected in the data, which shows that states like Texas, Florida, and Tennessee are seeing significant growth in the number of high-net-worth individuals.
In addition to the impact of technology and remote work, another driving factor behind the changing geography of wealth is the growing importance of entrepreneurship. Small business owners are increasingly important players in the US economy, and many of them are choosing to set up shop in smaller cities and rural areas. As a result, places like Nashville, Tennessee, and Austin, Texas, are seeing rapid growth in their economies and attracting a new generation of wealthy residents.
Despite these shifts, it’s important to note that the concentration of wealth in the US remains high. According to the article, the top 10% of households still control 70% of the country’s wealth. However, the changing geography of wealth suggests that the traditional centers of power and influence are no longer the only places where wealth can be found.
As wealth continues to shift across the country, financial advisors will need to adapt their strategies to meet the needs of their clients. Advisors who are able to understand the changing face of wealth in the US and tailor their services to meet the needs of clients in smaller cities and rural areas will be well-positioned to succeed in the years ahead.
In conclusion, the changing geography of wealth in the US is a reflection of broader economic trends, including the rise of technology, the growth of remote work, and the increasing importance of entrepreneurship. While traditional centers of wealth like New York and Los Angeles will always be important, smaller cities and rural areas are now playing a larger role in America’s economic landscape. Financial advisors who are able to adapt to these changing trends will be well-positioned to succeed in the years ahead.