Millennials may be making a comeback after years of ruining brands, piling up college bills, and spending money on avocado toast rather than homes.
A recent study by the left-wing think tank Center for American Progress examined how wealth changed for various age groups between 2019 and 2023 using information from the Federal Reserve's Distributional Financial Accounts.
The analysis revealed historically high wealth growth for the frequently maligned millennial generation.
According to CAP's estimate, the average wealth of households under 40 increased by 49%, or $85,000, between the end of 2019 and the end of 2023, from $174,000 to $259,000.
The real kicker is that the wealth gains were considerably greater for millennials alone, who in 2019 ranged in age from 23 to 38. By 2023, their wealth had doubled.
More families under 35 held real estate in 2023 than in 2019, and housing wealth increased concurrently with a decline in credit card and student loan debt.
"Compared to Gen X and the Baby Boomers, who experienced recessions at similar ages, millennials weathered the pandemic recession much better financially and with an improved financial security outlook," wrote Brendan Duke and Christian Weller, the report's authors.
"The pandemic and unprecedented support we gave families — including young people — through cash payments, student-loan pauses, and more helped drive the initial surge in wealth for younger Americans," Duke said to Business Insider.
Similar results from other studies have been found. Under 35-year-olds' real median net worth increased by 143% between 2019 and 2022, as previously reported by BI's Noah Sheidlower.
The fact that both median and average wealth increased indicates, according to the authors of the CAP report, that wealth gains were not limited to the highest-earning millennials.
"This suggests that the strong wealth growth for younger Americans is broad-based and not the result of strong growth of a handful of wealthy younger households," the researchers stated.
The Fed's poll did discover, however, that the wealthiest Americans generally had faster net worth growth.
According to data from the Federal Reserve Bank of New York's Liberty Street Economics blog, between the first quarter of 2019 and the last quarter of 2023, Americans under 40 saw an almost 80% increase in their real wealth.
Thus, the time for millennials to shine may finally arrive. That doesn't mean they won't be able to purchase homes, though.
Select Red Wings eliminated from playoff race despite comeback victory against CanadiensRed Wings eliminated from playoff race despite comeback victory against Canadiens