Millennials and older Gen Z combined had a total wealth of $13.2 trillion in the first quarter of 2024, according to a report from The Wall Street Journal citing Federal Reserve data. This marked a significant jump from just $4.5 trillion in 2020, largely driven by real estate investments.
"The median household net worth of older millennials, those born in the 1980s, increased to $130,000 in 2022, up from $60,000 in 2019," according to inflation-adjusted figures from the Federal Reserve Bank of St. Louis. For Americans born in the 1990s, including the youngest millennials born in 1996, median wealth more than quadrupled, rising to $41,000, the Journal reported.
Investments in stocks and mutual funds also played a role in the wealth increase. "This was partly because many employees contributed more to their retirement accounts earlier in their careers," the article explained.
However, the Journal cautions that it’s uncertain whether millennials are better off overall, given the sharp rise in costs for essentials like child care, housing, and healthcare. Additionally, they are expected to live longer than Baby Boomers, meaning their wealth will need to stretch further into retirement.
Despite these challenges, economists say millennials possess traits that suggest long-term financial success. More have college degrees, which generally leads to higher incomes, and they are having fewer children, which, while it may impact the country’s demographics, benefits personal finances.
Millennials were once considered far behind their parents' generation in terms of homeownership, but despite challenges in the post-pandemic housing market and rising interest rates, older millennials have caught up. According to data from the St. Louis Fed, as noted by the Journal, the percentage of millennials who owned homes increased to about 60% between 2019 and 2022.
