The State of U.S. Wealth Inequality

The State of U.S. Wealth Inequality presents a timely look at average, inflation-adjusted wealth for various demographic groups. The St. Louis Fed’s Institute for Economic Equity provides quarterly data on racial, generational and educational wealth inequality based on average U.S. household wealth. Knowing the current state of wealth inequality sheds light on opportunities to foster a more equitable economy where everyone can thrive.

These estimates reveal the size of the wealth gaps between different demographic groups and identify which groups have the fewest resources. Knowing the magnitude of these gaps over time is an important step toward understanding why these differences persist and what actions might close them. Expanding the opportunity to build wealth to all families creates the potential for greater economic equity.

Key Takeaways

For the second quarter of 2024 (through June 30):

How much wealth inequality is there in the U.S.?

• The top 10% of households by wealth had $6.9 million on average. As a group, they held 67% of total household wealth.
• The bottom 50% of households by wealth had $51,000 on average. As a group, they held only 2.5% of total household wealth.

What is the current generational wealth gap?

• Younger Americans (millennials and Gen Zers) owned $1.33 for every $1 of wealth owned by Gen Xers at the same age.
• Younger Americans (millennials and Gen Zers) owned $1.32 for every $1 of wealth owned by baby boomers at the same age.

What is the current racial wealth gap?

• Black families owned about 23 cents for every $1 of white family wealth, on average.
• Hispanic families owned about 19 cents for every $1 of white family wealth, on average.

What is the current wealth gap by household education?

• Families headed by someone with some college education (but no four-year degree) had 30 cents for every $1 of wealth held by families headed by a four-year college graduate.
• Families headed by someone with a high school diploma had 22 cents for every $1 of wealth held by families headed by a four-year college graduate.
• Families headed by someone with less than a high school diploma had 9 cents for every $1 of wealth held by families headed by a four-year college graduate.

Despite increased volatility, average wealth grew for all groups over the past five years (including during the COVID-19 pandemic). Wealth gains partially eroded starting in 2022 as economic headwinds (e.g., inflation, the expiration of pandemic-related support) put pressure on household finances. That said, average wealth outcomes as of the second quarter of 2024 remain elevated relative to prepandemic levels.