How Many Decamillionaires Are There in the US?
Uncover the number of decamillionaires in the US. Understand their wealth, how their population is changing, and the complexities of measuring this affluent demographic.
A decamillionaire is an individual with a net worth of $10 million or more. This designation reflects a substantially higher level of accumulated wealth than a millionaire. Understanding these highly affluent individuals provides insight into wealth distribution and economic dynamics within the United States. This article explores their definition, current numbers, growth factors, and measurement challenges.
Defining a Decamillionaire
A decamillionaire is formally defined as an individual with a net worth of $10 million or more. Net worth is the total value of assets minus liabilities. This calculation includes a wide array of holdings that can be converted into cash, reflecting a person’s complete financial picture.
Assets commonly factored into net worth include real estate (beyond a primary residence), investment properties, commercial holdings, and financial instruments like stocks, bonds, and mutual funds. Cash and cash equivalents, including savings and money market accounts, are also central. Business ownership interests, particularly in privately held companies, contribute significantly.
Conversely, liabilities are subtracted from assets to arrive at net worth. These typically include outstanding debts like mortgages on investment properties, personal loans, or other credit obligations. The $10 million threshold distinguishes this group from general millionaires, providing a more granular classification of substantial wealth.
The Current Landscape of US Decamillionaires
The United States holds a significant proportion of the world’s wealthiest individuals, including many decamillionaires. A 2024 report stated 905,413 individuals in the U.S. had over $10 million in assets. This places the U.S. as a global leader, hosting nearly 40% of the world’s richest in this category.
Another October 2023 analysis indicated approximately 2,132,856 households in America possessed $10 million or more in net worth. These varying figures highlight that definitions and methodologies among reporting agencies can lead to different estimates, with some reports focusing on individuals and others on households.
Decamillionaire wealth often shows diversification across asset classes. It is frequently held in publicly traded stock, business assets, closely held stock, financial assets, limited partnerships, and cash assets. Real estate (beyond primary residence) and retirement assets also form part of their comprehensive financial portfolios.
Trends and Projections
The U.S. decamillionaire population has grown considerably, reflecting broader economic shifts. For instance, the number of Americans with fortunes exceeding $10 million more than doubled between 1982 and 1987, with approximately 20% annual growth. This trajectory has continued in recent years, despite economic cycles.
Economic factors play a substantial role. Strong stock market performance and a stable U.S. dollar drive wealth creation. Real estate appreciation, technological advancements, and entrepreneurial successes further create opportunities for significant wealth generation.
Projections suggest the U.S. will maintain its dominance in wealth creation. Ongoing strength in financial markets and continued innovation are anticipated to fuel further expansion of the decamillionaire demographic. However, global economic conditions, including interest rates and geopolitical events, can influence wealth accumulation.
Data Collection and Measurement Challenges
Measuring the number of decamillionaires presents challenges due to the private nature of wealth. Data on high-net-worth individuals is compiled by financial institutions, private wealth management firms, and global research organizations. They gather information from public records, financial reports, and proprietary client data.
A significant challenge is the confidential nature of individual and household assets, making comprehensive public disclosure rare. Valuing illiquid assets, such as private business interests or unique real estate, can be complex and subject to differing appraisal methods. Wealth data can be prone to measurement error, with some surveys potentially underreporting wealth, particularly at the highest levels.
Different reporting agencies may employ varied methodologies for calculating net worth or defining wealth tiers, leading to discrepancies. Some reports might include primary residences, while others focus solely on investable assets. Consequently, while estimates provide a valuable overview, obtaining an exact, universally agreed-upon count remains complex.