The Blubber

The picture of American prosperity shows the average household net worth reaching $1.06 million, up 23% from $868,000 in 2019. This figure, though significant, conceals a more complex and unequal economic reality.

While American households appear financially strong, the middle class experiences a different story. Between 2019 and 2022, real median family income grew modestly by 3%, while real mean family income saw a 15% increase, with the higher income brackets enjoying most of these gains, thus widening income inequality.

During this time, real median net worth rose by 37%, and real mean net worth by 23%—the largest three-year increase in modern Survey of Consumer Finances records. However, this overall growth belies unequal wealth distribution. Homeownership, a major factor in net worth, rose slightly to 66.1%, with median net housing value climbing from $139,100 in 2019 to $201,000 in 2022. This increase in housing values significantly boosted net worth but also deepened housing affordability issues, as median home values soared to more than 4.6 times median family income.

Inequality is further underscored in retirement savings and stock market investments. Although over two-thirds of working-age families participated in retirement plans, the largest balance increases occurred among families in the upper half of the income scale. Stock market participation also rose across all income levels, but the most significant gains were seen in households within the 50th to 90th percentiles.

The top 1% of U.S. households hold a staggering 30% of the nation's wealth—amounting to $44.6 trillion.

Wealth inequality is starkly illustrated by asset distribution across income levels. By early 2024, the top 20% of income earners in the U.S. controlled approximately 71% of the country's wealth, while the bottom 50% owned only around 2.5% of total U.S. wealth.