America is getting richer. Household wealth, at nearly $170 trillion according to the latest Federal Reserve data, is hovering around all-time highs as stock portfolios swell. Home values are climbing and retirement accounts have fattened up. But, the big winners in this wave of prosperity aren’t the strivers just entering the workforce.
It’s boomers.
Born between 1946 and 1964, baby boomers hold the lion’s share of U.S. wealth and they’re pulling even further ahead, according to a study [1] by New York Unversity economist Edward Wolff. Their houses are mostly paid off. Their 401(k)s ballooned during a historic bull market. Many are already drawing Social Security and Medicare benefits. The result? They’re cashing in on decades of compounding gains.
Younger Americans, meanwhile, are staring down ballooning student debt, high rents and rising food costs — food overall ran nearly 4% more expensive in July 2025 vs. the previous year, according to the United States Department of Agriculture — that eat through paychecks before they can even think about saving.
Wolff’s research shows young people’s net worth has technically improved — and their age gives them time to benefit from compounding — but the gap with boomers may still feel like a chasm.
Wolff’s research and conclusions center on three primary factors: stocks, homeownership and debt.
Boomers owned the right assets at the right time, especially stocks. They shifted heavily into financial assets over time, and the value of their direct and indirect stock holdings exploded relative to everyone else. By 2022, their stockpile (from sources like 401(k)s, IRAs and mutual funds) had skyrocketed versus the overall average, capturing decades of market gains that younger households largely missed while they were still trying to buy in.
Second, among the oldest Americans, homeownership rose sharply over the study window (1983 to 2022) and stayed high. At the same time, their net home equity increased relative to the rest of the population. Translation: Boomers not only owned homes more often, they owned more of those homes. Rising property values then accrued to them, not to renters or would-be buyers.
Finally, young families took on the debt while older Americans shed it. Mortgage dynamics did a lot of the separating, as mortgage debt swelled for the youngest households while falling for the oldest. That higher leverage has strained young families during downturns and diluted their gains during upswings. Meanwhile, with little mortgage debt, boomers kept more of every dollar of asset appreciation.
Jobs don’t make it easier. While the unemployment rate in 2025 looks healthy on paper, wage growth for younger workers has been eroded by inflation. For many, groceries, rent, child care and student loan payments chew through income faster than raises can keep up.
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
There are bright spots. A strong stock market has boosted retirement accounts, and many millennials are finally outearning their parents at the same age [2]. Younger investors are also benefiting from employer 401(k) matches and compound growth, if they can scrape together contributions. And, remember, their age gives them decades to close the gap, primarily through compounding gains in the market.
But, the reality is that many younger Americans are running the race with what feels like a weighted vest. They’re spending more just to stay afloat, which delays homeownership, retirement savings and debt payoff. Even when their wealth rises on paper, it doesn’t always translate into financial security.
Take homeownership, for instance. The median home price in 1980, when many boomers were coming of age, was around $47,200 — or about $195,000 when adjusted to 2025 dollars [3]. In August 2025, the median U.S. home price was $422,400. The same goes for vehicle ownership. A new car that cost $7,000 in 1980, about $29,000 in today’s dollars, now runs nearly $49,000 in 2025, according to Kelley Blue Book [4].
If you’re a millennial or Gen Z and feeling left behind, remember that time is on your side. Younger people just now dipping their toes in their employer’s retirement plans have decades to take advantage of matching contributions, compounding interest and upward market swings. Here are three practical ways to fight back against the generational wealth gap:
Automate savings into a high-yield savings account or investment account as soon as your paycheck hits. Even $50 a week compounds powerfully over time.
If your employer offers 401(k) matching, contribute at least enough to get the full match. It’s essentially a 100% return.
Market volatility can sting, but staying invested in low-cost index funds or ETFs lets you ride decades of growth. A “set it and forget it” strategy beats trying to time the market.
And yes, it’s tough to save when rent and food prices keep climbing. That’s why financial advisors recommend focusing on what you can control: trimming high-interest debt first, then building habits around consistent investing. Small wins today create room for bigger ones tomorrow.
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[1]. National Bureau of Economic Research. “The Extraordinary Rise in the Wealth of Older American Households”
[2]. Information Technology & Innovation Foundation. “Fact of the Week: Americans Continue To Earn Higher Household Incomes Than Previous Generations”
[3]. GoBankingRates. “How Much the American Dream Costs for Boomers vs. Millennials”
[4]. Kelly Blue Book. “New-Vehicle Prices Hold Steady in May, As Automakers and Dealers Work To Offset Tariff-Driven Cost Increases”
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