US Wealth Controlled by Older Generations, Intergenerational Wealth War Heats Up
US household wealth remains dominated by the older generation. However, younger generations are beginning to accumulate wealth as they age and their incomes increase.
Data from the Federal Reserve’s Distributional Financial Accounts shows that the wealth ownership gap between generations remains evident in the second quarter of 2026, particularly due to the dominance of Baby Boomers. Net wealth in this data includes total assets, such as housing, stocks, and pension funds, after deducting debts. Generations are grouped based on the birth year of the household head, with those born in 1981 and above categorised as Millennials, including Gen Z.
Baby Boomers (born 1946-1964) still dominate US household wealth. In the second quarter of 2026, they controlled 52.5% of wealth, amounting to US$97.4 trillion. This share is significantly larger than their contribution to the total number of US households, which is only around 30%.
Decades of wealth accumulation is a key factor in Boomer dominance. They hold US$35.2 trillion in stocks and mutual funds, representing 55% of the total ownership of such assets by US households. In the second quarter of 2026, Boomer net wealth increased by US$7.5 trillion, with approximately US$5.5 trillion stemming from rising equity values.
Meanwhile, Generation X (born 1965-1980) controls 25.7% of US household wealth, which is relatively balanced with their share of the total number of households at 25.8%.
The wealth of younger generations is beginning to grow. In the Federal Reserve’s classification, the group born in 1981 and above is combined into the Millennial category, including Gen Z. The wealth share of this group increased from 4.9% in the second quarter of 2020 to 11.2% in the second quarter of 2026. The value has nearly quadrupled, from US$5.3 trillion to US$20.8 trillion.
Despite this rapid growth, the wealth accumulation of the younger generation still lags behind. During the same period, Boomer wealth increased by US$38.2 trillion, whereas Millennials and Gen Z increased by US$15.5 trillion.
The shift in the wealth landscape is visible over the long term. In 1990, the Silent Generation and older generations controlled almost 80% of US household wealth. Over time, the Boomer share rose from 19.8% in 1990 to 52.5% in 2026. Generation X also rose from 0.5% to 25.7%, while Millennials and Gen Z now hold 11.2%.
However, the asset and debt structures of the younger generation differ from those of the Boomers. Real estate accounts for 38% of assets for Millennials and Gen Z, compared to 20% for Boomers. Regarding debt, the younger generation carries US$8.6 trillion, or 43% of total US household debt. This amount is equivalent to 29% of their assets, far above the Boomer ratio of 4%.
The US intergenerational wealth map has the potential to change as Boomers age and assets begin to be inherited by the next generation. However, the transfer of wealth will not automatically mean that the younger generation will match the wealth of the older generation. The shift will depend on inheritances, house and stock prices, asset ownership, debt levels, and the wealth distribution within each generation.