A report from the Federal Reserve Bank of St. Louis finds that younger families experienced significant gains in median wealth in 2022. In older millennials, it was 37% above expectations, while younger millennials and older Gen Z-ers was 39% above expectations.

“Every year that we get this data, it comes out every three years, it’s the best data that we have on wealth, we’re able to update our predictions, our models,” said Ana Hernández Kent, a senior researcher. “What we found was the latest data that came out, 2022 is the year, we found that they’re actually ahead of where we would expect them to be.”

Several factors contributed to the gains, including the surge in housing prices, the stock market performance, and increased savings and investments.

“House price appreciation was really remarkable during this period,” said Lowell Ricketts, a Federal Reserve Bank of St. Louis data scientist. “The financial markets, despite some volatility, especially at the outset of the pandemic, really have been resilient during this time and have not notched some gains for many of these families.”

He said that the pandemic initially concerned many in the real estate field.

“What would it mean to sales with this pathogen broadly in the community? But what we saw is that house prices really appreciated significantly,” he added. “So, this was not a headwind, but a tailwind for wealth accumulation for these younger families who have become homeowners.”

Another contributing factor, according to the Fed, is that the median wealth more than quadrupled to $41,000 over this three-year period. Because 2022 is the most recent data, it is unclear if the significant wealth gains will continue.

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