Austin, Texas, which saw an influx of affluent residents during the pandemic, seems to be losing its charm for the wealthiest Americans. Many are now gravitating towards Scottsdale, Arizona.
Just last year Austin was attracting the most millionaires of any city in the country, according to Henley & Partners data.
Now, however, the Texas city has fallen out of the top five and been replaced by newcomer Scottsdale.
During the pandemic, Austin attracted numerous high-income workers as significant tech firms like Tesla and Oracle relocated their headquarters there.
Movers, freed by Covid-era home-working, were tempted by relatively affordable housing and lower taxes compared to places like New York City.
Nevertheless, the disparity in housing expenses between large urban employment hubs and cities in the Sun Belt has decreased. Additionally, Texas is experiencing an increase in climate-related challenges, leading to higher home insurance premiums.
As a result, Austin has even seen its house prices go into decline earlier this year.
Now Scottsdale, just east of the state capital Phoenix, is attracting the most millionaires of any city in the country.
Millionaires are now flocking to Scottsdale, Arizona
Austin was considered a Covid-era boomtown but is now losing some of its appeal
The desert city of 250,000 people has seen its millionaire population grow by 125 percent between 2014 and 2024, according to Henley & Partners’ latest research.
Like Austin, Scottsdale has benefitted from an influx of prominent tech businesses in recent years, including GoDaddy, Microchip Technologies and Avnet.
Andrew Amoils, who worked on the Henley & Partners’ report, linked the rise of Scottsdale with the decline of Austin.
‘Austin’s tech sector has slowed down over the past couple of years,’ Amoils told Realtor.com.
‘This may be linked to the emergence of new tech hubs such as Tampa and Scottsdale.
‘During the 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,’ he explained.
Scottsdale now counts 14,800 millionaires among its residents, as well as 64 centi-millionaires and five billionaires.
The city is home to a growing number of exclusive golf clubs and is attracting large numbers of tech entrepreneurs from California, as well as wealthy retirees.
Scottsdale, just east of Phoenix, now attracts the most millionaires in the country
Scottsdale saw its millionaire population grow by 125 percent between 2014 and 2024
The Arizona desert city of Scottsdale and Palm Beach are large draws for wealthy retirees
Scottsdale was followed on the list of wealthy hotspots by West Palm Beach in Florida, which is now the second fastest growing millionaire’s hub.
The south Florida metro, known for Trump’s Mar-a-Lago base, grew the number of millionaires resident there by 112 percent in the same decade.
The coastal area has long been a major retirement hub for wealthy New Yorkers and Californians.
The area is also seeing an influx of financial firms.
West Palm Beach is now being dubbed ‘Wall Street South,’ with over 300 hedge funds and private equity firms with offices there.
San Francisco and the Bay Area, Miami, and Washington DC also made the top ten.
