The Surprising Truth About Which Generation’s Wealth Is Growing the Fastest

Many people fell behind financially due to the COVID-19 pandemic, and some have not yet recovered. However, between 2019 and 2024, millennials managed to amass wealth at a pace that surpassed previous generations at their age.

What was once seen as the financially burdened generation is now leading a wealth revolution.

Millennials’ Financial Progress

When the pandemic hit in March 2020, the markets tumbled, interest rates dropped, inflation soared, and uncertainty ruled. Wealthfront’s recent report has shown that millennials not only weathered this turbulence but also emerged financially stronger.

The report points to data from the Federal Reserve, which reveals that the total net worth of U.S. millennials jumped from $3.94 trillion in Q3 2019 to a staggering $15.95 trillion in Q3 2024, a nearly four-fold increase.

Wealthfront’s millennial clients saw account balances grow by 137%, from $45,600 in early 2020 to $108,130 by early 2025. Notably, the share of millennial “Wealthfront millionaires,” clients with over $1 million in assets, grew by 144% over the past five years. And since these Wealthfront accounts exclude assets like real estate and 401(k)s, their total wealth is likely greater.

Overall, according to that report, millennials’ financial progress has eclipsed that of Gen X and baby boomers, who saw their wealth grow by 76% and 40%, respectively.

Americans under 40, a group that includes Generation Z, saw their average wealth rise by 49% between 2019 and 2023, according to another 2024 report from the New Center for American Progress. And a report from Empower found that millennial wealth grew 13% in 2024, which is faster than Gen X and boomers.

Key Factors Driving the Millennial Wealth Surge

Building wealth takes careful planning and smart financial decisions. Wealthfront’s data highlights several key factors that fueled millennials’ financial growth over the past five years, showing how they navigated challenges and made strategic choices to accumulate wealth despite the economic climate.

Consistent Investing: Millennials have shown remarkable discipline in their investment habits, making steady contributions despite market fluctuations.

Strategic Retirement Planning: Staying committed to building their retirement savings is another driving factor for millennials to build wealth. Since March 2020, their average individual retirement account (IRA) balances have increased by more than 110%.

Real Estate: Real estate has become a powerful wealth-building tool for millennials. Values of acquired properties increased by more than 40% from 2020 to 2025, boosting their home equity and strengthening their overall financial position.

The Bottom Line

The takeaway is clear: many millennials are financially thriving. Their strong commitment to investing, saving, and diversifying their portfolios has allowed them to weather economic uncertainty and build lasting wealth.

With continued focus on long-term financial strategies, millennials are well-positioned to maintain and grow their financial success in the years to come.