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Older Americans have seen their wealth rise tremendously in recent years, while other age groups have not been as lucky, according to a new paper.
From 1983 to 2022, the wealth of households led by those 75 and older has significantly increased, while the wealth in all other age brackets has dropped, according to a study by NYU Economist Edward Wolff. This surge in wealth is primarily seen among older Baby Boomers, particularly those born before 1950.
Wolff analyzed data from the Federal Reserve’s Survey of Consumer Finances, focusing on individuals aged 35 and under, and those 75 and over. He identified that key components of generational wealth included high rates of homeownership, substantial stock holdings, and minimal home mortgage debt.
Here’s how older Baby Boomers got so rich:
Homeownership rates
The U.S. Census Bureau reports that Baby Boomers currently possess nearly 40% of all U.S. homes, despite representing only 20% of the population. The National Association of Realtors highlighted in April that 42% of all home purchases were made by Baby Boomers, with nearly half of these transactions being completed with cash.
A February 2024 report from Freddie Mac projected that as Baby Boomers continue to age, their diminishing homeownership will lead to 9.2 million homes entering the market by 2035. In 2022, Boomers owned 32 million homes, with predictions suggesting a decline to 23 million by 2035.
The National Association of Realtors found that home prices have nearly doubled from 2014 to 2024, increasing from a median of $217,100 to $418,700 over that decade. By July 2025, median home prices had reached another new peak.
Stocks
In terms of stock ownership, Baby Boomers are also predominant. The Kobeissi Letter, which provides insights into global markets, noted that in the first quarter of the year, Boomers held 54% of all U.S. corporate stocks and mutual funds, compared to a mere 8% held by millennials.
“The generational wealth divide is massive,” The Kobeissi Letter wrote in a post on X.
US equity ownership is heavily skewed toward older generations:
Baby Boomers now hold 54% of all US corporate equities and mutual fund shares, down only slightly from 57% in Q1 2020.
By comparison, Millennials own just 8% of all equities, up from ~2% in 2020.
Gen X accounts… pic.twitter.com/4ofwErSlPq
— The Kobeissi Letter (@KobeissiLetter) July 14, 2025
Home mortgage debt
Home mortgage debt, which refers to the amount owed as a result of buying a home, is also particularly low for older generations. According to Bankrate, the average mortgage balance in the final quarter of 2024 was $194,334 for Baby Boomers — much lower than the $312,014 balance attributed to Millennials (ages 28 to 43) or the $283,677 balance associated with Gen X (ages 44 to 59).
Mortgage debt is trending higher overall. The average U.S. mortgage debt was $252,505 in 2024, a close to $8,000 increase from the previous year, according to credit bureau Experian.
Older Americans have seen their wealth rise tremendously in recent years, while other age groups have not been as lucky, according to a new paper.
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.
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