Millennials more affluent since 2019

 

Millennials have experienced a historic surge in wealth from 2019 to 2023, according to a report from the Center for American Progress. Contrary to stereotypes about their financial struggles, millennials saw significant growth in their wealth during this period, despite the challenges posed by the pandemic recession.

Key findings from the report include:

1. Rapid Wealth Growth: The average wealth of households under 40 increased by 49% during this period, marking a historic rate of growth. For millennials specifically (those aged 23 to 38 in 2019), their wealth doubled from the end of 2019 to 2023.

2. Factors Driving Wealth Growth: Several factors contributed to millennials' wealth gains, including rising housing wealth and a decrease in credit-card and student-loan debt. More households under 35 owned property in 2023 compared to 2019.

3. Comparison to Previous Generations: Millennials fared better financially during the pandemic recession compared to previous generations during similar economic downturns. For example, Gen Xers and baby boomers saw far less wealth growth following recessions that occurred during their early career stages.

4. Role of Labor Market and Stimulus: The robust labor market, fueled by pandemic-era stimulus measures, played a significant role in driving millennials' wealth growth. Cash payments, student-loan pauses, and strong wage growth contributed to their improved financial outlook.

5. Broad-Based Wealth Growth: Wealth gains among millennials were not limited to a few high-earning households but were broad-based across the demographic. Both median and average wealth grew, indicating that wealth gains were distributed across a larger segment of the population.

Despite these positive trends, challenges such as housing affordability remain a significant concern for millennials. The report suggests that sustaining a strong labor market and addressing housing affordability issues should be priorities for policymakers to support continued financial well-being among younger Americans.