"Between 1983 and 2022, the relative household wealth of Americans 75 and older soared, while the mean net worth of all other age groups fell, according to a new paper by Edward Wolff, a New York University economist. Wolff found the gap was driven by three main factors: the homeownership rate, the share of stocks owned, and mortgage debt. He zeroed in on the gap in median net worth between Americans over 75 and those under 35."
"The paper found that homeownership rates for Americans 65 and older rose by more than seven percentage points between 1983 and 2022, while they stagnated among those under 35. Boomer homeowners have benefited from soaring home values over the last few decades amid a shortage of homes and growing demand. And they're holding onto those homes, to the detriment of younger would-be buyers."
Between 1983 and 2022, relative household wealth of Americans aged 75 and older rose markedly while mean net worth fell for other age groups. Homeownership for those 65 and older increased by more than seven percentage points, while homeownership stagnated for those under 35. Boomer homeowners benefited from soaring home values amid a housing shortage and have retained larger homes, often with three or more bedrooms. Younger homeowners carry much higher mortgage debt. Growth in stock-based retirement accounts and 401(k)s concentrated market gains among older households. The gap in median net worth between those over 75 and those under 35 widened significantly. Some older Americans still face affordability and accessibility challenges.
Read at Business Insider
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