Unusual Whales

Millennial net worth is at an all time high

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Millennial net worth is at an all time high, per BI.


A recent study by the Center for American Progress, a progressive think tank, examined changes in wealth across various age groups between 2019 and 2023 using data from the Federal Reserve's Distributional Financial Accounts.

The report delivered encouraging news for millennials, who have often faced economic challenges. According to the analysis, the average wealth of households under 40 increased by an impressive 49% during this period, marking a substantial rise from $174,000 to $259,000. This surge in wealth was unprecedented in the history of the data series and followed a period of relatively stagnant growth for young Americans before the pandemic.

Even more noteworthy was the wealth growth specifically among millennials aged 23 to 38 in 2019, which doubled between 2019 and 2023.

Certainly, it's expected that a cohort entering its peak earning years would experience significant wealth accumulation as members purchase homes and engage in more substantial investments. Indeed, housing wealth increased, and the proportion of households under 35 owning property in 2023 surpassed that of 2019, while credit card and student loan debt decreased.

However, the most remarkable aspect is that these gains occurred amidst and after the pandemic-induced recession — a downturn historically associated with harsher economic consequences for younger workers.

"Millennials emerged from the pandemic recession in a stronger financial position with a more positive outlook on financial security compared to Gen X and Baby Boomers when they faced similar recessions," noted the report's authors, Brendan Duke and Christian Weller.

For instance, during the Great Recession of 2007, when Gen Xers were aged 27 to 42, their real wealth only increased by 4% over the subsequent four years. Similarly, baby boomers, aged 26 to 44 during the 1990 recession, saw their real wealth rise by 46% in the four years following that downturn. These comparisons underscore the exceptional financial gains made by millennials.