What pandemic? Despite a steady drumbeat of Covid-19 cases around the country, the net worth of the wealthiest Americans dramatically rebounded in the five months ended in August—far outpacing growth in other parts of the world.
According to a new report by wealth research firm Wealth-X, the richest North Americans—classified as those with a net worth of at least $30 million—have already recovered much of their pre-pandemic wealth. Their collective net worth grew 37%, to about $12.5 trillion from the end of March, a time when parts of the country were operating under shelter-in-place orders, to the end of August.
The number of individuals in North America worth at least $30 million also rose 28% to 104,440 during that same period. That represents a major recovery from the first quarter, when the number of high-net-worth individuals around the country had dropped by 23% from the end of 2019. The number of ultrahigh-net-worth individuals in both the U.S. and globally is down by roughly 3% since the end of 2019.
Hope for NYC:
“Unlike in ‘typical’ recessions, the bulk of the damage to wealth holdings from the pandemic will most likely have been frontloaded,” the report says.
“As the global economy rebounded in the second and third quarters of 2020 from its temporary cessation of activity, helped by extensive stimulus and support programs, there was a broad bounceback in financial markets and renewed opportunities for wealth creation.”
The report offers a glimmer of hope to New York City developers who are grappling with an excess of high-end condominium projects.
Manhattan residential sales were down 46.3% in the third quarter of 2020, compared with the same period last year.
There are currently more than 20 months of supply of homes on the market, not including shadow new development inventory that is not publicly listed.
Sales of higher-end apartments are outpacing those of entry-level units. Sales of homes priced at $5 million and above were down only 23.2% overall.