In the recent decades, the growing number super-rich people in the world reached levels of global inequality not seen since the “golden age” in the US. Understanding where these super-rich people and their families live can help us learn more about their sources of wealth and the influence of their mobility on cities in the global economy. Cities like New York, London, and Paris are full of super-rich people, and that’s a fact that many attribute the reached astronomical levels of prices, properties and the burgeoning inequality in these cities.
A new report sets out to put on the map this global geography of the super-rich. For this purpose he used detailed data from Forbes for more than 1,800 billionaires in the world, whose net worth, taken together, has exceeded $ 7 trillion in 2015.
In the US there are nearly a third of billionaires worldwide, 12.2 percent in China, 4.5 percent in India and Russia, and 4.3% were from Germany. The figures below show the number of billionaires in the world’s metropolises.
New York ranks first with a strong lead, with 116 billionaires, followed by San Francisco with 71, Moscow 68 (although the percentage of billionaires there recently reduced), Hong Kong with 64 and 51 in LA, London (50) Beijing (46), Mumbai (33), Miami (31) and Istanbul (30) completed the top ten. Taken together, four of the ten cities topped the list and six of the top 20 are located in the United States. Large cities in the US and Asia (especially China) have the largest share of self-realized rich men, while those in Europe and South America have mostly inherited their wealth.
The second card ranks leading cities in wealth owned by billionaires. Again, New York topped the list with $ 537 billion or 7.6% of the total global state of billionaires and San Francisco ranks second with $ 365 billion or 5.2%.
Top five is completed by Moscow ($ 290 billion., 4.1%), Hong Kong ($ 274 billion 3.9%) and London ($ 213 billion 3%). Los Angeles comes down to sixth position ($ 175 billion 2.5%) and Beijing seventh ($ 171 billion. 2.4%). Paris ($ 167 billion. 2.4%), Seattle ($ 164 billion., 2.3%) and Dallas ($ 156 billion. 2.2%) round out the top 10.
This time the United States has five cities in the top ten and nine in the top 20.
Here is the wealth of the cities and the percentage of billionaires in the global state of billionaires.
Smaller cities rise to the top of the list when analyzing the average net worth of billionaires. Bentonville, Arkansas (where live two members of the family Walton, who own and control Walmart) tops the list of smaller cities with the highest average state of billionaires just under $ 40 billion. He is followed by Omaha, Nebraska, where lives Warren Buffett, with $ 38.2 billion., Big Horn, Wyoming, with
$ 26.6 billion because of the heir of the empire of desserts Forrest Mars Jr. La Coruna, Spain is fifth, followed by Jackson, Wyoming.
Lines of Billionaires
The number one global industry of billionaires is fashion and retail, with over $ 1 trillion., or more than 15% of the overall state of billionaires – outpacing finance, technology, oil and natural resources.
Technologies that are in the second position, reached $ 989 billion. 14% of the total world state, followed by a margin of finance and investment in the third position with $ 962 billion.
Resources (oil, energy, metals, and mining) are fourth with $ 623 billion and automotive business and industry are fifth with $ 561 billion. In the end, the four leading lines of industry are more than half of the world’s billionaires and top 5 has 60 %.
The following are the Top 10 Food & Beverage with $ 542 billion and 7.7% share of real estate with $ 526 and 7.5% Media – $ 355 and 5.0% and Health & Medical – $ 308 or 4.4% share.
In many cases, the wealth of the billionaires is closely related to the places where they live.
Milan tops the list of fashion and retail, followed by New York, Paris, and London – has established fashion capitals. San Francisco is ranked as the technology, followed by Beijing, Los Angeles, Bangalore, Seoul, Shenzhen, and Seattle. New York leads the list for finance and investment, as it is followed by San Francisco, Moscow, Los Angeles and Miami.
Super-rich and everyone else
The difference in the wealth of the billionaires and the other inhabitants of the cities is stunning, analyzed by the so-called. Super Rich Wealth Gap, criterion comparing the wealth of billionaires with the economic situation of the average citizen on the basis of economic performance per person.
This difference is most pronounced in the poorer or less developed cities like Bangalore, Mumbai, Mexico City, Manila, Jakarta, Delhi, Bangkok, Hangzhou, Beijing, Shanghai, Rio de Janeiro, Sao Paulo and Santiago. It is quite pronounced in the more developed cities like Seattle, Dallas, Paris, Stockholm, Toronto, and Tokyo.
Determining the cities of Billionaires
What factors distinguish the cities of the super-rich? For their establishment is conducted basic correlation analysis comparing the number of billionaires and their general wealth with main characteristics of global cities, such as population, population density, economic performance and labor productivity. As usual, correlation does not imply causality, but simply highlights any relationships between variables.
When it comes to geographic distribution of billionaires, the size of the city seems to be of biggest importance. The population of the major cities has a direct relationship with billionaire percent (.56) and their net position (.44). Billionaires are even more closely related to the size of the economy in cities with significant correlations between the economic performance of cities and the number of billionaires (.68) and their general wealth (0.61).
Billionaires are more likely to be found in the more competitive cities and leading technology hubs, analysis shows. Yet some of the most competitive and financially strong cities in the world actually have fewer billionaires than would be expected, given their economic and financial power, and some smaller locations have more billionaires than is normal for the size of their economy, competitiveness and financial strength.
In the end, the geography of the super-rich is filled with extreme peaks. In the ten cities topped the rankings live almost a third (30.7%) of the super-rich in the world, although it contains less than 2 percent of the world population.
The top 20 of the cities, live over 40% of billionaires (43.5%) making up only 3.5 percent of the world population.
The top 50 of the cities occupy almost two-thirds (63.6%) of the world’s billionaires, but there are only 7% of the world population.
The wealth of the billionaires is more unevenly distributed. Top 10 cities control $ 2.5 trillion. – More than the total GDP of Brazil, Italy or India. Top 20 cities hold $ 3.4 trillion., the equivalent of the GDP of Germany, the fourth largest global economy. Top 50 holds almost $ 5 trillion. – the equivalent of the third largest economy in the world after the US and China.