Knight Frank released on Thursday a preview of its annual Wealth Report, which determines how much money people need to be part of the richest 1% of the population in different countries in the world.
In the U.S., the threshold was $5.8 million, a 15% increase compared to the year prior's $5.1 million, the report said. Robust wealth creation and a strong economy explained the bump, the report said.
This means that even though Latino wealth has been growing rapidly over the past decade in the country, having tripled since 2013, the average family in the country would need to multiply its net worth by more than 90 times to become a part of the selected group.
According to the latest edition of NAHREP's State of Hispanic Wealth Report, Latino household wealth rose to $63,400 in 2022, with homeownership and self-employment as two of the main drivers.
The figure contrasts with the general population median, which was of $192,160 in 2022, meaning a need of multiplying wealth by 30 times to become part of the 1%.
Non-Hispanic Blacks stand below on the list, with a median household wealth of $44,100 (needing to multiply their wealth by 131 and a half times to be part of 1%). Non-Hispanic Whites are at the other end of the spectrum, with $283,300 and needing to multiply their wealth by 20 times to reach $5.8 million.
But how many Latino millionaires are in the U.S.? The latest data available comes from a Forbes report.
Citing a study by CultureBanx, it showed that Latinos represented 7% of the country's millionaire population in 2021, compared to 8% of Blacks, 8% of Asians and 76% of Whites.
This means that Latinos were underrepresented in this segment of society, considering they currently comprise almost 20% of the country's overall population. Asians are slightly overrepresented, as they account for 7% of the population, while Whites, who are about 71% of the population, had 76% of all millionaires.
The report also delved into the chances each demographic had of becoming a millionaire. While Whites and Asians had the highest chances, Latinos and Blacks had the lowest. "Asian Americans with a high school degree to become millionaires are 6%. White, Hispanic, and African Americans with the same degree have chances of respective 5%, 2%, and 1%," the report said.
With a Master's degree, in turn, "White Americans have the highest chances of 38% earning $1 million." "Asian, Hispanic, and African Americans have chances to become a millionaire of 27%, 11%, and 6%, respectively."
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