$27 Million Per Household: Top 100th of 1% of Rich Americans Means More Big Real Estate Deals
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Champs D'Or
More proof that the rich are getting richer, and the American middle class is diminishing: according to Mother Jones Magazine, the top 100th of 1% of the wealthiest Americans, now make an average of $27 million per household. The average income for the bottom
90% of the US population is $31,244. The median net worth of the average American family is about $120, 000, and your odds of becoming a millionaire at that salary are 1 in 22, But here’s what’s totally wrong with Washington, D.C. and why the real estate market there is faring so well: the average net worth of a Congressman (person) is a whopping $912,000 with a one in two chance of them becoming a millionaire. Real estate markets saturated with wealthy consumers always weather the storm — New York City, Aspen, D.C.
How will this translate into real estate sales? Markets in wealth-populated cities will weather the economic tide: Highland Park won’t look much like a recession or a double dip. I foresee more big-ticket home purchases — multi-million dollar mega homes, multiple homes for the wealthy — after all, one-quarter of $27 million leaves $7 million for housing expense. At the other end, for those earning less than $100,000 I foresee less home ownership and more rental. What concerns me is what will happen to the values of all those in-between homes.
What do you think?
