Millennials Shatter “Broke Generation” Label as Wealth Soars 49% among Under-40s Please use the style transfer tool to convert this article into a more conversational tone suitable for a magazine feature.

Millennials have shed their “broke generation” label as household wealth among Americans under the age of 40 has skyrocketed by a staggering 49% between 2019 and 2023. This cohort, which includes most millennials aged 28 to 43 years old and some Gen Zers in their teens up to age 27, saw an inflation-adjusted average net worth of around $174,000 at the end of 2019 grow by $85,000 to reach $259,000 by the close of 2023 according to a Center for American Progress (CAP) analysis based on Federal Reserve data. However, surging inflation and higher interest rates during much of 2022 took their toll as young Americans’ wealth peaked at over $280,00 in Q1 2022 before showing signs of rebounding from pre-pandemic levels.
The surge in the net worth of under-40 households is attributed to a combination of factors according to CAP’s analysis. The average value of assets owned by these young Americans increased significantly, while their non-housing debt dropped by $5,000 during this period, helping boost overall wealth levels. Homeownership rates among individuals aged under 40 also grew by an average of 1.5 percentage points between 2019 and 2023 according to Census Bureau data.
While some of the effects of the pandemic such as student loan payment pauses and canceled travel and entertainment plans may have helped young adults pay down debt, boost their cash savings, and improve overall wealth levels during this period, it’s important not forget that many individuals experienced layoffs due to COVID-19 recession triggered by the virus. However, government intervention prevented a prolonged downturn as consumer wealth recovered faster than previous recessions for millennials aged between 26 and 40 years old at the start of the 1990s’ economic slump or Gen Xers (aged between 27 to 42) during the Great Recession. Overall, following inflation-adjusted levels of net wealth gains during these two prior crises, millennials experienced a more significant recovery with their average wealth increasing by approximately 101% between QE and December ’23, per CAP data analysis.
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