According to the annual report on wealth by Swiss banking giant UBS, the United States experienced the most significant decline in net worth compared to any other country in 2022. The Global Wealth Report revealed that Americans collectively lost nearly $6 trillion, causing 1.8 million individuals to lose their millionaire status, as reported by Fortune.
Interestingly, while all generational groups in the US saw a decline in their net worth last year, millennials were the only exception. The Messenger highlights that individuals born between 1980 and 1997 experienced a rise in their net worth by almost 7%. On the other hand, Generation X, Boomers, and the Silent Generation all recorded drops of 1.3%, 1.6%, and 14.5% respectively.
So, what’s the secret behind millennials’ success? The answer lies in real estate, particularly the surge in home prices. CNN explains that millennials have a higher percentage of their net worth tied to their homes (37%) rather than the stock market, which experienced a 20% decline in the S&P 500 index last year.
The National Association of Realtors reveals that 70% of younger millennials and 46% of older millennials were first-time homebuyers in 2022. This significant homebuying activity among millennials, who currently range in age from 27 to 42, contributed to their overall increase in net worth.
Contrary to popular belief, the data debunks the myth that millennials are financially struggling or irresponsible with money. Kevin Mahoney, a financial adviser who is also a member of the millennial generation, asserts that there is solid evidence supporting millennials’ financial stability. He argues that the narrative surrounding millennials’ financial mismanagement or excessive complaining is not grounded in reality.
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