Baby boomers’ $85 trillion edge and Gen Z’s path forward
Story by Lucas Bennett, Wellbeing Whisper, 12/10/25
“The baby [boomer] generation has really gobbled up a huge share of household wealth, so it’s left a lot less for other age cohorts,” said Edward Wolff, professor of economics at New York University. Numbers support that: Baby boomers, just 20% of the U.S. population, now hold more than $85 trillion in assets over four times the wealth of millennials and more than fourteen times that of Gen Z. Federal Reserve data show that those over 70 have expanded their share of household wealth from 19% in 1989 to 31% today, a record high.
This was no accident. Boomers came of age in that rare economic sweet spot. In the 1970s, when many entered the housing market, inflation was high but so were opportunities. Home prices surged in the decades that followed, creating enormous equity gains. The timing was even better for those who invested in stocks. Boomers now control 54% of equities worth more than $25 trillion. By contrast, millennials own about 8% of stocks, valued at $3.9 trillion, and Gen Z’s holdings are far smaller.
Housing has been the most visible fault line. Supply has stayed tight since the 2008 recession, and price to income ratios have reached historic highs. In 2025, the share of first time homebuyers fell 21%, while the average age of those buyers reached a record 40. Today, only 33% of 27 year olds are homeowners, versus 40% of boomers when they were that age. Prices are now eight to twelve times median household income in high-cost markets like San Jose, Los Angeles, and Honolulu, locking out many younger buyers.
These are not all the issues confronting Generation Z. Since 2022, the labor market has cooled, while hiring rates remain stuck at 3.2%, the same level as during the pandemic. Unemployment hovers at an estimated 14% among 16 to 19 year olds and 9% among 19 to 24 year olds, significantly above the national average. Many recent graduates are finding themselves underemployed or being pushed toward trade work as AI reshapes hiring priorities. This early career stagnation curbs wage growth, mobility, and the ability to build wealth through steady saving and investing.
Yet there are signs of resilience. According to Pew Research Center data, in 2023, 18 to 24 year olds earned a median inflation adjusted income of about $20,000 well above the $15,000 their 1993 counterparts made. In some areas, income growth is finally beginning to outpace home price growth, offering at least some hope for future buyers. And despite their current $6 trillion in total wealth, Gen Zers are still at the beginning of their accumulation curve. As Michael Walden, professor emeritus of economics at North Carolina State University says, “It makes logical sense that older people will accumulate greater percentages of wealth at any point in time because they’ve had more years to invest and reap the returns of their investments.”
The long heralded Great Wealth Transfer a projected $124 trillion that’s supposed to flow from boomers to younger generations could tip the scales. Last year, a single year saw 91 heirs take in a record $297.8 billion, a 36% increase from the year before. But Tim Gerend, chief executive of Northwestern Mutual, says the process will play out slowly, often first moving between spouses in the boomer generation before touching Gen X, millennials, or Generation Z.
Longer life spans make the timeline hard to predict, and planning solely on an inheritance is precarious. For the generation of younger adults navigating through this landscape, the lessons from this are clear. In this day and age of high costs, one must deliberately strategize the building of wealth: save consistently, diversify investments, and seize opportunities in those sectors where growth potential is strong. Trades professions, sustainable housing development, and targeted entrepreneurship can offer viable paths.
“People appreciate they’re more responsible for their own financial futures than they’ve ever been… have a plan, be consistent with the plan,” Gerend advises. While stark, the generational wealth gap isn’t written in stone. The economic headwinds may be real, but so too is the capacity for adaptation. For millennials and Gen Z, understanding the forces that shaped boomer wealth and the structural barriers they face today is the first step toward rewriting their own financial futures.