America’s Top 1% Grew Wealth 30% in 3 Years as Housing and Stocks Outpaced Inflation
Updated
Updated · CNN · May 29
America’s Top 1% Grew Wealth 30% in 3 Years as Housing and Stocks Outpaced Inflation
1 articles · Updated · CNN · May 29
Top 1% households increased their net worth 30% over the past three years, while the middle 40% gained less than 10%, widening the U.S. economy’s K-shaped split.
More than half of U.S. home value is held by the top 20%, and over three-quarters of financial assets are owned by that group as home prices climbed and the S&P 500 jumped 86.2%.
Higher mortgage rates locked many lower-income Americans out of homeownership, while homeowners had already extracted $430 billion in equity through post-pandemic refinancing.
Inflation also hit unevenly: consumer prices rose 57% for the bottom 20% between 2005 and 2023, versus 46% for the top 20%, because poorer households spend more on housing and food.
That gap is showing up in spending, with households earning under $40,000 raising inflation-adjusted spending just 1.3% over three years, compared with 7.6% for those making $125,000 or more.
Why does strong economic data mask that nearly half of American households cannot afford their basic needs?
What structural forces are preventing average Americans from building wealth like previous generations did?