How Many Millionaires Are There in Maine?
Understand Maine's economic dynamics. Explore the scope of its affluent population and the key elements contributing to the state's financial landscape.
The presence of individuals with substantial financial holdings indicates a region’s economic vitality. Wealth statistics offer insights into a state’s economic health, reflecting industry growth, investment opportunities, and quality of life. Understanding wealth distribution illuminates broader economic trends and provides a snapshot of financial prosperity.
Understanding Wealth Measurement
A “millionaire” in financial reporting refers to an individual or household with a net worth of $1 million or more. Net worth is calculated by subtracting total liabilities from total assets, including investments, real estate, and other valuable possessions. This definition distinguishes wealth from annual income, as high income does not automatically equate to high net worth if liabilities are substantial.
Wealth data is derived from sources like financial institutions, private wealth management reports, and government surveys such as the Federal Reserve’s Survey of Consumer Finances. They use methods such as extrapolating from tax data, conducting detailed surveys, and valuing diverse asset classes to estimate wealth distribution. Measuring wealth across an entire population presents challenges, including potential underreporting of assets and fluctuating market values.
Current Millionaire Count in Maine
As of 2020, Maine was home to 31,993 millionaire households. This represents 5.60% of all households in the state, holding investable assets of $1 million or more. This figure excludes primary residences, employer-sponsored retirement plans, and business partnerships.
Economic Drivers of Wealth in Maine
Maine’s wealth accumulation is influenced by its diverse economic sectors, many rooted in natural resources. Key industries include marine and aquaculture, particularly the lobster industry, which accounts for a significant portion of the nation’s supply. Forest products, including traditional logging and emerging bio-based manufacturing, also contribute, alongside a growing life sciences sector focusing on areas like veterinary diagnostics.
The state’s real estate market has also been a driver of wealth, with appreciation in property values, especially in coastal and lake regions. The median home value in Maine reached $336,167 in 2022, experiencing a 21.7% appreciation in one year. Areas like Portland have seen a boom in the luxury real estate market, fueled by demand from high-earners and second-home seekers. Demographic shifts, including an influx of affluent individuals and retirees, further contribute to the state’s wealth, impacting property values and local economies.
Maine’s Wealth Profile in Perspective
Maine’s millionaire concentration can be viewed relative to national and regional trends. In 2020, Maine ranked 33rd among U.S. states for its concentration of millionaire households. This indicates its prevalence is lower compared to many other states.
Within the New England region, Maine’s threshold for the top 1% of wealthy individuals was $1,508,803 in 2019, lower than its neighbors. For instance, Massachusetts required $4,365,167 to reach the top 1%, and New Hampshire’s threshold was $2,701,801. Historically, Maine’s growth in income per high-income taxpayer has lagged behind the national average and New Hampshire’s. While Maine saw an outsized share of millionaires in the late 1970s due to agricultural real estate, its current wealth profile reflects a different economic landscape.