Boon for Existing Homeowners
Younger individuals who haven’t had sufficient time to save money or buy a home are not experiencing the same level of wealth growth. However, for existing homeowners, it has been a significant advantage. Federal Reserve data from Q3 2023 reveals that Americans aged 55 and above now own 72% of the nation’s wealth. Within this age group, those above 70 hold 30% of the wealth and have witnessed the largest gain over the past year at $3.57 trillion.
In contrast, younger generations, including Gen X, millennials, and Gen Z, all under the age of 55, have experienced stagnant growth, as indicated by Fed data. Approximately 25% of households aged 40 to 54 own only 20% of the nation’s wealth, while individuals under 40 possess less than 7%. These two groups represent 53.3% of all households but hold just 27% of the country’s wealth.
The Influence of Stock Market and Housing Valuations
According to Willis’ report on “Varney & Co.,” older Americans have benefited from a strong stock market and rising housing values in the post-COVID era. These individuals have also had decades to capitalize on stock investments and homeownership.
These statistics align with a recent FOX poll, which demonstrates that younger voters are leaning more towards Donald Trump over President Biden by a margin of 13 points, with the economy being one of their primary concerns as we approach 2024.
Biden’s handling of the economy, along with factors such as mortgage rates and lower inflation, may be contributing to a political realignment where young voters are returning to Trump due to dissatisfaction with the state of the economy. This issue, combined with concerns about inflation, foreign policy, and potential personal corruption arising from the impeachment inquiry, poses a compounding challenge for President Biden.