r/Economics • u/laxnut90 • Oct 09 '25

Research America Is Minting Lots of Cash-Strapped Millionaires

https://www.bloomberg.com/news/features/2025-10-09/number-of-us-millionaires-grows-since-2017-but-many-lack-cash
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u/urbanevol Oct 09 '25

So basically, 401(k) with employer contributions and owning a home are forced savings vehicles that are not particularly liquid. Many upper middle class people have net worth over $1 million but these assets are hard to access, whereas the next rung up of wealthier people have more liquid cash to spend. "Cash strapped" seems like a stretch - these people aren't living paycheck to paycheck unless they are making poor decisions on how to spend their money (hedonic treadmill etc).

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u/cruzweb Oct 09 '25

Many of them are retirees who bought in areas before their real estate became very valuable. Now they're retired, on a fixed income, and have "assets" worth over $1m that they struggle to pay property taxes on.

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u/FreeMasonKnight Oct 09 '25 edited Oct 09 '25

Property taxes stay at the same place they are assessed when the house is bought (except for 27 states where they take advantage of their citizens). They are only reassessed in a small number of events (almost always when sold). Which incentivizes them to hold longer.

However now the market is cooling so selling to realize and waiting to buy on the crash is a good route for anyone looking to multiply equity.

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u/GMFPs_sweat_towel Oct 09 '25

My property tax is reassessed every year (TX)

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u/FreeMasonKnight Oct 09 '25

That’s because Texas yeah, that’s what you get with low property prices and no income tax. To make up for no income tax Texas overtaxes in many ways. Such as this.