In Boston, nearly 1 in 20 households are millionaires
Interesting Article and good read...
Link: http://www.boston.com/news/local/articles/2006/01/01/in_boston_nearly_1_in_20_households_are_millionair es/
Chart from the article:
Metro Areas with the largest percentages of millionaires:
The number of millionaires living in the Boston area, already one of the wealthiest regions in the United States, will surge 50 percent over the next five years, according to data from two wealth management companies that have studied the issue.
Alerts For a city that as recently as 30 years ago struggled with a decaying urban core, the expected influx is one more sign of its dramatic turnaround. By 2009, the number of millionaire households in the region is expected to increase to 88,000, up from 58,000 in 2004.
The projected growth rate parallels the national average. But because Boston starts out with a higher percentage of millionaires in its population -- nearly one in 20 households, more than New York, Chicago, and Los Angeles -- and because the overall population is barely growing, demographic specialists expect more impact here.
The wealth surge will shape the future of the region and the quality of life in Boston, both for future millionaires and those who are nowhere close. Already, businesses catering to the wealthy are flocking to the city: Steakhouse Smith & Wollensky, where the average evening diner spends $72, opened in the Back Bay in 2004. Financial services companies Northern Trust and Bank of New York recently set up new offices here to serve the wealthy, while Bank of America Corp. moved its global wealth and investment management division to Boston.
Those new high-end businesses mean more jobs. But the jump in millionaires may also drive up prices for numerous services and goods, including housing. Down the road, some economists worry about the deeper social implications of a rapid rise: The rich will enjoy ever more of life's luxuries, while the poor struggle to pay rent and dig out of debt.
Economist Mark Zandi said he sees two classes emerging in Boston and nationally: One earns above the region's median family income, about $75,000 in the Boston area, and lives in comfort, with job security, stock holdings, and little debt. The other half earns below the median, has far less job security, and worries about credit card debt and student loans.
''This reinforces the view that the folks who are doing well are doing very well, and the folks who aren't doing well aren't doing very well at all," said Zandi, chief economist for Moody's Economy.com. ''The middle class is bifurcating. It's becoming two classes."
The projected rise in millionaires will be fueled by several factors, said William Whitt, vice president of strategic marketing at Northern Trust, which obtained information on the growth in millionaires from demographic data company Claritas Inc. Several of Boston's key industries -- financial services companies, the technology industry and law firms -- all pay their high-level executives hefty salaries.
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