The majority of investment advisory firms’ main offices are concentrated in a relatively small number of states, with the distribution likely driven by access to financial markets, population and net worth.

The Investment Adviser Association and National Regulatory Services’ recently released Evolution/Revolution report, which is based on Form ADV, Part 1 data filed by all advisors registered with the Securities and Exchange Commission as of April 7, found that states considered to be financial hubs, like New York and Massachusetts, are, obviously, attractive spots for advisors to be located.

Proximity to New York City is part of the reason that Connecticut and New Jersey rank high among advisor locations, but Connecticut’s ranking is also influenced by the concentration of hedge funds located in the Greenwich and Stamford areas.

While Massachusetts is only the 14th state in population ranking, it has a high average household net worth and is the home of many advisors in the mutual fund industry. Texas’ large population contributes to its high ranking on the list, while Los Angeles, San Francisco and Chicago are home to secondary financial hubs, which pushes both California and Illinois high among states that are home to advisory practices.

Read on to see the top 10 states by number of advisors headquartered.

The Rock and Roll Hall of Fame and Museum in Cleveland. (Photo: AP) 

10. Ohio

Number of advisors: 234

Average household net worth: $465,366

Net Worth Rank: 26

View of Jersey City from Liberty State Park.

9. New Jersey

Number of advisors: 282

Average household net worth: $645,594

Net Worth Rank: 1

Miami Skyline. (Photo: AP) 

8. Florida

Number of advisors: 356

Average household net worth: $479,325

Net Worth Rank: 22

Hartford skyline.

7. Connecticut

Number of advisors: 414

Average household net worth: $631,272

Net Worth Rank: 2

Civil War Museum in Harrisburg. (Photo: AP)

6. Pennsylvania

Number of advisors: 429

Average household net worth: $474,152

Net Worth Rank: 25

Millennium Monument at Chicago's Millennium Park. (Photo: AP)

5. Illinois

Number of advisors: 514

Average household net worth: $542,457

Net Worth Rank: 10

Boston park. (Photo: AP)

4. Massachusetts

Number of Advisors: 526

Average household net worth: $577,681

Net Worth Rank: 4

Alamo in San Antonio. (Photo: AP) 

3. Texas

Number of advisors: 561

Average household net worth: $481,273

Net Worth Rank: 20

Lombard Street in San Francisco.

2. California

Number of advisors: 1,286

Average household net worth: $559,819

Net Worth Rank: 5

Brooklyn Bridge with Manhattan in background.
 

1. New York

Number of advisors: 2,162 

Average household net worth: $525,358

Net Worth Rank: 13

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