For decades, the American Dream has promised that each generation would do better than the last. But new research shows that when it comes to wealth, the opposite has happened: the oldest Americans are pulling ahead, while younger generations struggle to catch up.
A new paper by Edward Wolff, an economist at New York University, reveals that between 1983 and 2022, the relative household wealth of Americans aged 75 and older surged, while the mean net worth of younger age groups declined. The widening gap underscores deep generational inequities — fueled by housing, stocks, and debt.
The Surprising Upswing in Older Americans’ Wealth
Wolff’s initial goal was to explore the financial struggles of younger Americans. But the data told a different story:
“The real story is the remarkable upswing in the net worth of older American households,” Wolff wrote in his paper.
While millennials and Gen Z face stagnant wages, rising debt, and unaffordable housing, Americans over 75 have seen their assets soar in value.
Why Boomers Are Winning the Wealth Race
Three key factors explain the gap:
1. Homeownership Advantage
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Homeownership among Americans 65+ increased by more than seven percentage points between 1983 and 2022.
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By contrast, rates for Americans under 35 stagnated.
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As housing prices skyrocketed, boomers who bought decades ago saw their home equity balloon.
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In 2022, empty-nest boomers owned twice as many large homes (three or more bedrooms) as millennials raising kids, effectively locking younger buyers out of family-sized housing.
2. Stock Market Gains
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The growth of 401(k) retirement plans and stock-based investment accounts disproportionately benefited older Americans.
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Over time, boomers accumulated larger investment portfolios and rode the bull markets of the 1990s and 2010s.
3. Debt Divide
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Younger homeowners have faced heavier mortgage debt burdens relative to income.
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Rising interest rates and higher housing costs have left them stretched thin, while older homeowners often have paid-off mortgages or very low remaining balances.
The Hidden Struggles of Older Americans
While aggregate data paints a rosy picture for older households, not all seniors are thriving.
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One-third of households aged 65+ were cost-burdened in 2023, spending more than 30% of income on housing, according to Harvard’s Joint Center for Housing Studies.
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More than half of those were severely cost-burdened, devoting over 50% of income to housing.
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Rising property taxes, home maintenance costs, and healthcare expenses are squeezing many older Americans, particularly those without strong retirement savings.
Still, these challenges pale compared to the uphill climb younger Americans face in accumulating wealth.
A Generation Left Behind
For millennials and Gen Z, financial progress feels out of reach:
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Stagnant wages and rising student loan debt have made it harder to save.
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Many are priced out of homeownership entirely, missing the generational wealth-building that real estate provides.
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Even those who own homes face higher mortgage debt-to-income ratios than their parents or grandparents ever did.
The result: a historic wealth imbalance between young and old — one that risks reshaping the American economy and deepening intergenerational divides.
The Bottom Line
America’s oldest generation has turned into its richest. Fueled by housing appreciation and stock gains, their wealth has grown dramatically while younger households fall further behind.
For policymakers, the findings raise difficult questions: How can the U.S. address a generational wealth divide that risks leaving millions of younger Americans without the financial security their grandparents enjoyed?
Until then, the gap between boomers sitting on appreciating assets and millennials saddled with debt may continue to define the country’s economic future.
