Generational Wealth Gaps

In 2023, baby boomers, Gen X, millennials, and Gen Z each made up approximately 20 percent of the total U.S. population. The Silent Generation accounted for just under 5 percent, while Gen Alpha represented slightly more than 12 percent. However, wealth distribution among these groups is far from equal. Millennials and Gen Z combined hold just over nine percent of total wealth, while baby boomers control 52 percent. Despite being criticized for lagging in wealth accumulation, millennials have recently made significant gains, thanks in large part to rising home prices, doubling or quadrupling this generation's median household net worth.

Over the past decade, however, generational wealth gaps have widened. In 2001, older families had $254,000 more in wealth than younger families; by 2022, this disparity had grown to $347,000. Planners should consider the need to provide younger generations with affordable housing options that will encourage them to remain in their communities.