While overall US household wealth has risen, baby boomers have captured the lion's share of gains, fueling generational tensions and raising concerns about long-term economic equity. The disparity is particularly evident in real estate, equities, and financial assets.
- US household wealth reached $140 trillion in 2025, with boomers holding a median net worth of $1.2M
- Millennials and Gen Z have a median net worth of $270,000, with 68% under 40 still paying mortgages
- SPY, QQQ, and XLF have delivered average annual returns of 11.3%, 12.8%, and 9.2% since 2015
- 76% of homes owned by those over 55 are mortgage-free, compared to only 32% for under-40s
- Rent-to-income ratios for younger Americans exceed 40%, constraining savings and asset acquisition
- Youth discretionary spending has grown just 1.8% annually since 2020, vs 5.4% for boomers
Recent data reveals that US household wealth has surged to record levels, with aggregate net worth exceeding $140 trillion in 2025. However, the benefits have been disproportionately concentrated among baby boomers—those aged 58 to 77—whose median net worth now stands at $1.2 million, nearly 4.5 times the $270,000 median for millennials and Gen Z combined. This divergence is driven by decades of asset accumulation, particularly in real estate and stock markets, where boomers hold significant exposure through SPY, QQQ, and XLF ETFs. The contrast is stark in housing, where boomers are more likely to own homes free and clear. In 2025, 76% of homes owned by those over 55 were mortgage-free, compared to just 32% among those under 40. This has enabled wealth compounding through equity appreciation, despite a 22% rise in home prices since 2020. Meanwhile, younger Americans face heightened barriers: average rent-to-income ratios now exceed 40%, and student debt has reached $1.7 trillion, limiting capital for asset building. Market indicators reflect this imbalance. The S&P 500 (SPY) and Nasdaq (QQQ) have delivered average annual returns of 11.3% and 12.8% respectively since 2015, with boomers as the dominant holding group. Financials (XLF) have also outperformed, benefiting from rising interest income and stable credit markets. In contrast, younger investors have limited access to these vehicles due to lower disposable income and risk aversion. The widening divide is affecting broader economic dynamics. Consumer spending by younger demographics remains subdued, with discretionary outlays growing just 1.8% annually since 2020, well below the 5.4% rate seen among boomers. This disparity poses risks to retail and services sectors reliant on younger consumption patterns. Policy debates around wealth taxes, housing reform, and student debt relief are intensifying as a result.