Millennials may have ditched their “broke generation” stereotype.
Household wealth among Americans under age 40 — which includes most millennials, who are currently ages 28 to 43, and some Gen Zers, who are currently in their teens and up to age 27 — grew by a whopping 49% between 2019 and 2023, according to a Center for American Progress analysis of Federal Reserve data.
The inflation-adjusted average net worth of households headed by someone age 40 or under was around $174,000 at the end of 2019. That number grew by $85,000 to hit $259,000 by the end of 2023, CAP found.
Record-high inflation and rising interest rates throughout 2022 took a bite out of the under-40 group’s wealth, which peaked at over $280,000 in the first quarter of that year. But compared with where it was before the pandemic, young Americans’ wealth appears to be on the come up, per CAP’s analysis.
Struggles to buy homes, pay off student debt and save for retirement have plagued many millennials’ and other young adults’ financial outlooks since they entered adulthood. But now, as the bulk of the millennial generation enters their mid-30s, they seem to be catching up.
