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Story by erelman@businessinsider.com (Eliza Relman)
Between 1983 and 2022, the relative household wealth of Americans 75 and older soared, while the mean net worth of all other age groups fell, according to a new paper by Edward Wolff, a New York University economist. Wolff found the gap was driven by three main factors: the homeownership rate, the share of stocks owned, and mortgage debt. He zeroed in on the gap in median net worth between Americans over 75 and those under 35. In the introduction to his paper, Wolff said he had intended to investigate the relative and absolute decline in younger Americans' wealth. But his research uncovered that "the real story is the remarkable upswing in the net worth of older American households."
As of 2022, empty-nest boomers owned twice as many homes with three or more bedrooms as millennials with kids. At the same time, younger people who've managed to buy a home have seen their mortgage debt rise much more than older Americans have. A study found that home equity, stock market gains, and lower debt fueled this wealth increase.
About a third of 65-and-older households were cost-burdened in 2023, meaning they spent more than 30% of their income on housing, according to a new report from Harvard's Joint Center for Housing Studies. More than half of those were severely cost-burdened, spending more than 50% of their income on housing.
Between 1983 and 2022, the relative household wealth of Americans 75 and older soared, while the mean net worth of all other age groups fell, according to a new paper by Edward Wolff, a New York University economist. Wolff found the gap was driven by three main factors: the homeownership rate, the share of stocks owned, and mortgage debt. He zeroed in on the gap in median net worth between Americans over 75 and those under 35. In the introduction to his paper, Wolff said he had intended to investigate the relative and absolute decline in younger Americans' wealth. But his research uncovered that "the real story is the remarkable upswing in the net worth of older American households."
As of 2022, empty-nest boomers owned twice as many homes with three or more bedrooms as millennials with kids. At the same time, younger people who've managed to buy a home have seen their mortgage debt rise much more than older Americans have. A study found that home equity, stock market gains, and lower debt fueled this wealth increase.
About a third of 65-and-older households were cost-burdened in 2023, meaning they spent more than 30% of their income on housing, according to a new report from Harvard's Joint Center for Housing Studies. More than half of those were severely cost-burdened, spending more than 50% of their income on housing.
