The Millennial Wealth Surge: A Decade of Surprises and Stark Divides
For millennials, the generation born between 1981 and 1996, the 2020s have painted an unexpected financial picture. Contrary to earlier narratives of financial struggle, recent reports indicate that millennials are accumulating wealth at a pace that surpasses both Generation X and baby boomers during the same period. A growing body of research highlights this trend, suggesting that millennials now possess more wealth than older generations did at a comparable stage in life.
Christian Weller, a Gen Xer and senior fellow at the Center for American Progress (CAP), acknowledges this shift, stating, "They’re doing better than we did." A 2024 CAP report reveals a significant surge in the average wealth of Americans under 40, encompassing both millennials and the oldest members of Generation Z. Between the end of 2019 and the end of 2023, this group experienced a remarkable 49% increase, reaching an inflation-adjusted average net worth of $259,000. Strikingly, millennials alone witnessed a doubling of their wealth during this period.
In stark contrast, Americans aged 40 to 54, primarily consisting of Generation X, experienced a 7% decline in wealth between 2019 and 2023. Boomers, aged 55 to 69, saw a modest 4% increase. Furthermore, a 2025 report from Empower, a financial services company, indicates that millennial wealth rose by 13% in 2024, dwarfing the gains made by Gen X and boomers.
The numbers further solidify the narrative of millennial financial progress. According to an analysis by the personal finance site LendingTree, the median millennial had a net worth of $84,941 in 2022. Adjusting for inflation, Generation X had a median net worth of $78,333 at the same age, while boomers lagged behind at $58,101.
Millennials and Gen Z adults have collectively experienced wealth accumulation across various asset classes in the 2020s. The CAP analysis highlights an increase of $22,000 in average housing wealth for households under 40 between the end of 2019 and the end of 2023. Liquid assets, including bank deposits, grew by $9,000, while other financial assets, such as stocks and mutual funds, rose by $31,000.
"It’s every single category that has gone up," Weller emphasizes. "That is home equity, retirement savings, equity in privately held businesses – all of that has grown faster" than for older generations. He also points to rising homeownership rates and faster wage growth among millennials.
This surge in millennial wealth represents a significant turnaround from earlier financial struggles. Just five years ago, millennials trailed far behind older generations in net worth. Mid-2019 data from the Federal Reserve showed millennial wealth totaling approximately $4 trillion, compared to $25 trillion for Gen X and $59 trillion for baby boomers. However, by the third quarter of 2024, millennial wealth had quadrupled to $16 trillion, while Gen X and boomer wealth experienced much slower growth.
Several factors contribute to this accelerated wealth accumulation among millennials. One significant reason is their lower starting point at the beginning of the decade. Financial analysts also attribute their rising fortunes to the economic cycles that have shaped their adult lives.
Many millennials entered the workforce, or attempted to, during the Great Recession in the late 2000s. This period was marked by plummeting home values, soaring unemployment rates, and a substantial decline in the S&P 500.
While the Great Recession impacted millennials, some older generations faced even greater challenges. The downturn struck when the oldest Gen Xers and the youngest baby boomers were in their prime earning years, their 30s and 40s.
The "Beatlemania" boomers, born in the early 1960s, emerged from the Great Recession with less wealth than older generations, and continue to lag in retirement wealth, according to research.
Generation X also grapples with similar economic challenges. Americans aged 45 to 54 possess less wealth than older generations held at the same age, according to the 2022 federal Survey of Consumer Finances.
Because millennials were younger during the Great Recession, the damage to their lifetime earnings was comparatively less severe.
Matt Schulz, chief consumer finance analyst at LendingTree, explains, "Millennials have had more time to recover from the hits they took in the Great Recession, when they were just coming out of the gates. I think a lot of them learned a lot of lessons from that period that have stuck with them."
However, the narrative of millennial wealth is not without its complexities and caveats. While many are experiencing financial gains, others are facing significant challenges.
Data from Money Management International (MMI), a debt-counseling nonprofit, reveals that millennials are increasingly turning to debt consolidation. Millennials represent 43% of new counseling clients at MMI, surpassing all other generations. The average millennial client now carries $30,000 in unsecured debt, including credit card debt.
Federal Reserve data also suggests that millennials, particularly those in their 30s, are carrying more debt now than in previous years, especially when compared to other age groups.
In the closing months of 2019, consumers in their 40s held the most total debt, $3.6 trillion, followed by Gen X fifty-somethings ($3.3 trillion) and millennial thirty-somethings ($3 trillion). By the end of 2024, the generations had shifted positions. Forty-somethings still held the most total debt, $4.7 trillion, but thirty-somethings now ranked second, with $4 trillion in debt, while fifty-somethings had fallen to third.
To a significant extent, the millennial wealth story is one of "haves and have-nots." A 2024 analysis by The Motley Fool indicates that just over half of millennials are homeowners. This generation took longer to reach that threshold than older generations due to rising home prices, leaving many millennials unable to accumulate property wealth.
Schulz of LendingTree suggests, "I think that older millennials, who bought into the housing market before everything got out of control, are probably driving a fair amount of this overall net worth growth."
Furthermore, wealth disparities within the millennial generation are significant. According to a 2024 report by Inequality.org, a nonprofit that tracks wealth disparities, nearly 70% of millennial wealth is concentrated in the top 10% of the generational population, making millennials the "most unequal generation" in the United States.
"It’s definitely not every millennial who’s basking in wealth," Schulz concludes.
In conclusion, while the 2020s have presented a surprisingly positive financial landscape for many millennials, it’s crucial to recognize that this wealth surge is not universally shared. The generation faces increasing debt burdens and significant wealth inequality, highlighting the complex and multifaceted nature of their financial experiences. The gains are very real for a significant percentage of Millennials, but there are still economic realities that create wealth gaps and financial pressures.
