FOXBusiness By Ann Schmidt October 16, 2019
The top zip code where millennial millionaires are living isn’t in California, New York or even Florida, according to a new report.
Instead, the zip code with the most millennial millionaires is in northwestern Michigan.
Coldwell Banker Global Luxury, along with WealthEngine, released a report on wealthy millennials on Wednesday, which analyzed their lifestyles, choices and spending habits.
According to the report, millennial millionaires make up 2 percent of the millionaire population in the U.S. and about 0.2 percent of the general population in the country.
About 93 percent of that group has a net worth between $1 million and $2.49 million and about 45 percent of that group is between the ages of 34 and 37.
Compared to 76 percent of millionaires overall, 67 percent of wealthy millennials are married.
Only 20 percent of millennial millionaires have a college education, but 42 percent of millionaires overall do.
As far as homeownership goes, the two groups are similar. 94 percent of millionaires overall are homeowners and 92 percent of millennial millionaires also have their own homes. However, only about 63 percent of other millennials have purchased property.
Overall, the average real estate portfolio of millionaires is $919,000, while millennial millionaires have an average of $1.4 million in their real estate portfolios, according to the report.
“A Look at Wealth 2019 Millennial Millionaires” also found that 44 percent of millennial millionaires live in California — however, the zip code with the highest number of the group is actually in Traverse City, Mich.
“Millennials tend to prefer markets that are more affordable — often in suburbs or second-tier cities, where their dollar will carry them further,” the report said.
“Even if they have the money, they may still choose a nontraditional luxury neighborhood over the prestige of a traditional luxury neighborhood, if it means they can walk to the corner café.”
According to the report, Traverse City’s luxury homes start around $500,000 and the city itself has had a revitalization over the last 10 years.
Coldwell Banker Global Luxury also found the favorite car models of millennials, compared to millennial millionaires. According to the report, wealthier young people prefer BMW 3 Series cars, while other millennials prefer Chevrolet Silverado cars.
And even though there’s a stereotype that millennials love traveling, only about 38 percent of young millionaires are interested in travel.
Many wealthy millennials are also generous, according to the report. About 56 percent of the group donates to charity — with political causes at the top of the list of charities.
“Millennials are more likely to give than other generations,” the report said. “They are especially passionate about aligning with causes they care about, whether it’s for the environment or political parties.”
“According to WealthEngine statistics, 35 percent of them say they have donated to charities,” the report added. “As wealth increases and they become more generous over the course of their lives, this number jumps to 56 percent among millennial millionaires.”
