Nielsen Study Reveals Emergence of Wealth Market Even in the Midst of an Economic Downturn
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NEW YORK, NY, May 20 (MARKET WIRE) --
Despite the economic downturn, the population of affluent Americans -- defined
as
those with household income and income producing assets (IPA) in excess of
$100,000 -- has grown so large that it now makes up the top 19 percent of
all U.S. households, according to a recent Nielsen Company analysis.
Deemed the New Mass Affluent, this group's numbers are rising, with some
22million households now earning over $100,000, a 23 percent increase from a
decade ago after adjusting for inflation, the study showed.
"Earning $100,000 may seem modest compared to the salaries of the big-city
elite,
but it is more than double the national median income of $49,280," said Jane
Crossan, Vice President of the Financial Services Group at Claritas,
Nielsen's marketing information provider, which conducted the analysis.
"There are more higher-earning Americans than ever, signaling a growing
opportunity for many business sectors to capitalize on reaching this market.
This
group controls $22 trillion in assets."
Crossan documented these and other findings in a recently-completed report
titled "Affluence in America," an in-depth look at America's changing wealth
landscape, that she co-authored with Mike Mancini, Claritas Vice President of
Data Product Management.
The report further locates the New Mass Affluent geographically by ranking
the
top 20 Core Based Statistical Areas (CBSA) based on $100,000-plus in IPA, or
liquid financial assets including checking accounts, savings accounts,
certificates of deposit, IRAs, mutual funds, retirement accounts, stocks, bonds
and
securities. A CBSA includes both metropolitan areas of at least 50,000
population and micropolitan areas with a population between 10,000-49,999.
The ranking showed that the New Mass Affluent are increasingly turning up
beyond the nation's beltways in "second cities" like Los Alamos, NM, the
number one ranked market, number three Torrington, CT and number six
Naples-Marco Island, FL.
"Now more than ever, companies need a sophisticated understanding of the New
Mass Affluent class -- who they are, where they live, what products they prefer
and how best to market to them," said Crossan. "To win over the New Mass
Affluent, marketers need to develop new products and services, differentiated
messages and varied channels to reach these under-the-radar customers."
Some of the other unlikely upscale markets on the list include number nine
Trenton, NJ (due to pockets of gentrification), number 10 Juneau, AK (a
thriving state capital) and Easton, MD, a small town rapidly evolving into a
retirement community, at number 20.
Unlike traditional power centers like New York and Chicago, where
residentspossess large incomes and lavish homes, these high-IPA hotspots skew
older than
average, having attracted many Baby Boomers still adding to their nest egg and
active retirees who haven't begun to crack theirs, Crossan said.
Top Markets for Households with $100,000+ in Income Producing Assets
% Penetration
CBSA Name 2007 HHs Penetration Index
Average Penetration Index 100
1 Los Alamos, NM 7,878 50% 165
2 Bridgeport-Stamford-Norwalk, CT 332,643 39% 131
3 Torrington, CT 75,778 38% 127
4 Washington, DC-VA-MD-WV 2,029,059 38% 126
5 San Jose-Sunnyvale, CA 593,262 38% 126
6 Naples-Marco Island, FL 135,886 38% 125
7 Oxnard-Thousand Oaks-Ventura, CA 262,246 38% 125
8 Gardnerville Ranchos, NV 19,761 37% 124
9 Trenton-Ewing, NJ 133,646 37% 122
10 Juneau, AK 11,865 37% 121
11 Barnstable Town, MA 97,697 36% 120
12 Truckee-Grass Valley, CA 40,724 36% 119
13 Napa, CA 48,928 36% 119
14 Lexington Park, MD 36,511 36% 118
15 Minneapolis, MN-WI 1,237,926 35% 117
16 Monroe, MI 59,522 35% 117
17 Hartford-West Hartford, CT 467,253 35% 116
18 Vallejo-Fairfield, CA 138,238 35% 116
19 Santa Rosa-Petaluma, CA 178,597 35% 116
20 Easton, MD 15,571 35% 116
========= =========== ============
Source: Claritas Income Producing Assets, 2007; index of 100 = U.S. average
(30%)
Overall, California led the list with six markets, followed by
Connecticutwith three and Maryland with two. The largest market in California
was number
five San Jose-Sunnyvale with 593,262 households. The Washington, DC CBSA was
the highest ranking major metro, at number four. The only other major market on
the list was Minneapolis at number 15.
Contact:
Steve Moore
858-677-9634
Email Contact
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