The average U.S. household net worth is $1.06 million, but the median net worth is much lower, at $192,700

The Federal Reserve’s 2022 Survey of Consumer Finances offers a compelling snapshot of American wealth, revealing a sharp rise in the average household's net worth. The mean net worth reached $1.06 million, up 23% from $868,000 in 2019. While this figure suggests widespread prosperity, it conceals significant disparities in wealth distribution.

Wealth Gains Mask Unequal Growth

For many middle-class families, the financial picture is less rosy. Between 2019 and 2022, real median family income rose by a modest 3%, compared to a 15% jump in real mean family income. These larger gains primarily benefited higher-income households, widening existing income inequalities.

Record Increases in Net Worth

The survey reported a 37% increase in real median net worth and a 23% increase in real mean net worth—record highs for a three-year period. However, these aggregate gains underscore stark inequalities. Homeownership rates rose slightly to 66.1%, with the median home value climbing from $139,100 in 2019 to $201,000 in 2022. This surge in housing values significantly boosted household wealth while exacerbating affordability challenges. By 2022, the median home value had grown to more than 4.6 times the median family income.

Retirement and Stock Market Inequalities

Disparities are also evident in retirement savings and stock investments. While over two-thirds of working-age families participated in retirement plans, the largest increases in account balances occurred among higher-income families. Similarly, stock market participation expanded across income groups, but wealthier families (those between the 50th and 90th percentiles) reaped the largest gains.

Concentration of Wealth

The top 1% of U.S. households now control 30% of the nation’s wealth—a staggering $44.6 trillion. When examining wealth distribution across income groups, the disparities become even starker:

• The top 20% of earners hold roughly 71% of total U.S. wealth.
• The bottom 50% collectively own just 2.5% of the nation’s wealth.

These figures highlight the growing concentration of wealth at the top, even as the economy as a whole experiences significant gains. For many American families, financial growth remains unevenly distributed, underscoring persistent challenges in achieving widespread economic equity.