Washington, D.C. — A recent analysis by the Center for American Progress reveals that younger Americans are emerging as the beneficiaries of a robust economic recovery following the COVID-19 pandemic. According to the analysis, younger Americans have seen a significant increase in their wealth, with an impressive 49 percent growth after adjusting for inflation since just before the pandemic, marking a departure from decades of economic stagnation.
The analysis highlights that younger households have outpaced older generations in terms of wealth accumulation during and after the pandemic. Specifically, Americans under the age of 40 experienced the fastest wealth growth, with average inflation-adjusted household wealth increasing by 49 percent. In contrast, households aged 40 to 54 saw a 7 percent decline in wealth, while those aged 55 to 69 experienced only a 4 percent increase.
One of the standout findings of the analysis is the remarkable wealth growth experienced by Millennials. Brendan Duke, senior director of economic policy, noted that Millennials have achieved unprecedented wealth growth, stating, "Millennials have broken through decades of stagnation with historically rapid wealth growth, and this is because of the historic economic recovery after the COVID-19 pandemic recession." The data shows that Millennials, aged 23 to 38 in 2019, saw their inflation-adjusted wealth double, increasing by 101 percent from the end of 2019 through the end of 2023.
Comparing the wealth growth of Millennials to previous generations, the analysis reveals a stark contrast. While Millennials have seen substantial wealth growth after a recession, Generation X, who were similarly aged prior to the Great Recession, only experienced a 4 percent increase in real wealth over a comparable four-year period.
The significant wealth growth among younger Americans is attributed to the broad-based economic recovery post-pandemic, leading to increased financial security and upward economic mobility. This growth spans various assets including homeownership, liquid assets, business ownership, and debt reduction, contributing to the overall well-being of younger generations.
For those interested in further insights, the column "Wealth of Younger Americans is Historically High" by Brendan Duke and Christian Weller provides additional analysis. For media inquiries or to schedule an interview, please contact Sarah Nadeau at [email protected].
