Rapidly Increasing Wealth Among a Specific Generation Revealed
Millennials Leading the Wealth Revolution
In the midst of the financial struggles caused by the COVID-19 pandemic, many expected millennials to continue struggling. However, this generation has surprise-d everyone, surpassing previous generations in wealth accumulation between 2019 and 2024.
Once pegged as the broke generation, millennials are now leading a wealth revolution.
Major Milestones
According to reports, millennials' net worth increased by a staggering $12 trillion between 2019 and 2024, eclipsing the financial growth of Gen X and baby boomers.
Wealthfront's report reveals that millennials not only weathered the financial turbulence but also emerged stronger. The total net worth of U.S. millennials jumped from $3.94 trillion in Q3 2019 to a whopping $15.95 trillion in Q3 2024, an almost four-fold increase.
Wealthfront's millennial clients saw their account balances swell by 137%, from $45,600 in early 2020 to $108,130 by early 2025. Notably, the share of millennial "Wealthfront millionaires" grew by 144% over the past five years. Their total wealth, excluding assets like real estate and 401(k)s, is likely much higher.
Fast Fact
Between March 2020 and February 2025, increases in IRA balances for millennials were over 112% versus over 52% for Gen X.
Other reports corroborate this trend. Between 2019 and 2023, Americans under 40 saw their average wealth rise by 49%, while millennial wealth grew 13% in 2024, outpacing Gen X and baby boomers.
Keys to Millennial Wealth Accumulation
Building wealth requires careful planning and smart financial decisions. Wealthfront's data pinpoints several key factors that, over the past five years, propelled millennials' financial growth despite economic challenges.
Consistent Investing: Millennials demonstrated admirable discipline in their investment habits, making steady contributions regardless of market fluctuations.
Strategic Retirement Planning: Staying committed to building their retirement savings is another driving force behind millennials' wealth accumulation. Since March 2020, their average individual retirement account (IRA) balances have increased by over 110%.
Real Estate: Real estate has proven to be a powerful wealth-building tool for millennials. Property values increased by more than 40% from 2020 to 2025, enhancing their home equity and strengthening their overall financial position.
The Takeaway
The evidence is clear: many millennials are thriving financially. Their dedication to investing, saving, and diversifying their portfolios has empowered them to survive economic uncertainties and build lasting wealth.
With an unwavering focus on long-term financial strategies, millennials are well-prepared to maintain and expand their financial success in the upcoming years.
Millennials' financial success in real estate contributes significantly to their wealth accumulation, as property values have increased by over 40% from 2020 to 2025, enhancing their home equity.
The investing habits of millennials have been instrumental in their financial growth during economic challenges, with their average individual retirement account (IRA) balances increasing by over 110% since March 2020.
