Unfortunately, having a national average net worth that exceeds $1 million does not mean the typical American is a millionaire. A small number of very wealthy households skews the average. As always, the median net worth ($192,900 in 2022) was much lower than the average, but its growth was by far the largest on record. Even after adjusting for inflation, the three-year increase in the median net worth (37%) rose more than the average (23%), showing that wealth inequality narrowed.
Still, the net worth of U.S. families varies greatly depending on housing status, education, and income level. Only about 12% of U.S. families have a net worth above $1 million, and many of those are older. This emphasizes the financial reality that for most people it takes time and diligence to build wealth.
Sources: Federal Reserve, 2023; The Wall Street Journal, October 27, 2023
Number of Millionaire Households
Average (mean) net worth, by age group
Source: Federal Reserve, 2023
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