"Over a recent 40-year period, between 1983 to 2022, the relative household wealth of those now ages 75 years and older has "sharply risen" while the wealth of all other age groups has declined, New York University Economist Edward Wolff wrote in a new paper. The Americans whose wealth has outpaced all other generations are a part of the older Baby Boomers group, or those born before 1950."
"Wolff used the Federal Reserve's Survey of Consumer Finances to compare two age groups - 35 years and under and 75 and over - and found the main factors that drive generational wealth are high homeownership rates, high amounts of stocks owned, and low home mortgage debt. According to the U.S. Census Bureau, Baby Boomers own nearly 40% of all available homes in the U.S., even though they make up just 20% of the population."
Between 1983 and 2022, relative household wealth for Americans aged 75 and older rose sharply while wealth for other age groups declined. The older Baby Boomer cohort, born before 1950, experienced the largest gains in generational wealth. Key drivers of that wealth advantage include high homeownership rates, sizable stock holdings, and relatively low home mortgage debt. Baby Boomers own nearly 40% of U.S. homes despite representing about 20% of the population, and many purchases were made with cash. Projections indicate Boomer-held homes will decline in number and many will enter the market by 2035, amid rapidly rising home prices.
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