The Growing Prosperity Gap

America is a very rich country, with phenomenal wealth creation over time. But there have been big changes in which portions of the US population own that wealth. You probably know the rich are getting richer, and the rest, not so much. You might be surprised, however, by some of the details.

There’s always a wealth gap in a capitalist economy. But it has grown unusually wide during the last 40 years, and that’s probably one big reason consumer confidence is generally dismal.

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Total household wealth · 1989–2025

Scroll to reveal the events that shaped the curve.

The Total Wealth of All Americans, 1989–2025

America is richer than ever, even as some groups find themselves worse off. Total net worth soared from $20.8 trillion in 1989 to $175.3 trillion in 2025 — a 742% increase.

Monumental developments have changed the distribution of wealth

1990s →

Digital technology began to create huge new opportunities for workers and entrepreneurs with technical skills. But it didn’t do much for blue-collar Americans.

The “China shock” hit working-class Americans

Early 2000s →

China’s rise as a massive exporter in the early 2000s killed millions of American factory jobs as the work went overseas.

The Great Recession that began in 2007 was a disaster for millions

2007–2009 →

It sprang from a housing bust that included millions of foreclosures and pushed unemployment to the highest level in 25 years.

Stock wealth · 1989–2025

Stock wealth, 1989–2025

The biggest single source of wealth in the United States is stocks, which account for 33% of total net worth. The value of stocks held by Americans exploded from $2.2 trillion in 1989 to $57.7 trillion in 2025 — a massive 2,580% gain.

Internet stocks soared, then sank

Late 1990s–2002 →

The dot-com bubble of the late 1990s burst in 2000. It took 7 years for stocks to regain their 2000 peak.

Then came the 2008 financial crash

2007–2009 →

The massive stock selloff that accompanied the Great Recession brought stocks back to 1997 levels.

The real tech rally is happening now

2022–present →

Stocks have been on a tear since the financial crash ended. The artificial intelligence revolution, which began in 2022, has driven the biggest gains of all.

Real estate wealth · 1989–2025

Real estate wealth, 1989–2025

The second biggest source of wealth is real estate, accounting for 27% of total net worth. The value of real estate jumped from $7 trillion in 1989 to $47.9 trillion in 2025 — a 585% increase.

Some housing riches proved temporary

2002–2011 →

The housing boom that began around 2003 was a windfall for some. But the housing market crashed starting in 2006 and didn’t begin to recover until 2011.

The Covid pandemic supercharged home prices

2020 →

Record-low interest rates, meant to stimulate the economy, led to a surge of demand for homes and soaring prices. People who owned homes before the pandemic got richer, but those high prices pushed home ownership out of reach for many.

These forces and others have concentrated wealth among a few select groups.

The richest 10% of Americans own 87.4% of all stocks — up from 81.6% in 1989. The bottom 90% own just 12.6%, down from 18.3% in 1989.

Current % of total U.S. stock wealth
Richest 10%
87.4%
Bottom 90%
12.6%
Each square = 1% · Source: Federal Reserve DFA, Q4 2025
Stocks · By wealth level

The baby boomers raked it in

Americans 55 and over own 79.2% of stocks — up from 58.7% in 1989. Those under 55 own just 20.9%, down from 41.4% in 1989. Baby boomers who own stocks are killing it. Many younger Americans aren’t benefiting at all from a roaring stock market.

Current % of total U.S. stock wealth
55 and over
79.2%
Under 55
20.9%
Each square = 1% · Source: Federal Reserve DFA, Q4 2025
Stocks · By age group

It’s getting harder to build wealth through home ownership

The wealthiest 10% of Americans own 43.6% of all real estate, up from 38.4% in 1989. The bottom 90% own 56.5%, down from 61.7% in 1989.

Current % of total U.S. real estate wealth
Bottom 90%
56.5%
Richest 10%
43.6%
Each square = 1% · Source: Federal Reserve DFA, Q4 2025
Real estate · By wealth level

There’s been a startling flip in home ownership by age

Younger Americans under 55 used to own the majority of real-estate wealth. Now older Americans aged 55 and older do. The shares reached parity in 2008 — the year of the financial crash. Since then, the share of real-estate wealth owned by those under 55 has dropped to the lowest levels on record, while older Americans own more real-estate wealth than ever. The difficulty young people have building wealth through home ownership is one of the most pernicious trends in the US economy.

Current % of total U.S. real estate wealth
55 and over
61.2%
Under 55
38.8%
Each square = 1% · Source: Federal Reserve DFA, Q4 2025
Real estate · By age group

Lack of wealth is an affordability problem

“The affordability crisis” is a catchall phrase for the financial anxieties many Americans feel in 2026. But one huge underlying cause is that millions of families find it difficult or impossible to build wealth. And the data shows it is getting harder for them.

The richest 10% now own 68.3% of all household wealth — up from 60.8% in 1989. The bottom 90% own just 31.7%.

Total wealth · By wealth level

By age, Americans 55 and over own 73.6% of all wealth, up from 56% in 1989. That’s close to a record high. Americans under 55 own just 26.4% of all wealth, close to a record low.

Total wealth · By age group

The next chapter in this story could be artificial intelligence, which some experts think will make the wealth gap even wider. That trend is probably already underway.

Source: Federal Reserve Distributional Financial Accounts (Z.1), Q4 2025