The US experienced a significant decline in wealth last year, but millennials saw their net worth rise due to their higher investment in real estate, debunking the myth that they are financially struggling.
The average net worth needed to be considered wealthy in the United States is $2.2 million, according to the 2023 Modern Wealth Survey by Charles Schwab, although respondents in San Francisco believe it takes $4.7 million to be wealthy, the highest across all cities surveyed. However, when asked if they feel wealthy themselves, respondents diverged from the monetary benchmark, with 48% feeling wealthy with an average net worth of $560,000, indicating that wealth is not solely determined by a financial figure.
The number of ultra wealthy individuals worldwide decreased by 5.4 percent last year, and their combined net worth fell by 5.5 percent to $45.4 trillion, with Asia experiencing the largest decline due to China's Covid policies and the war in Ukraine.
Despite increased household wealth in the US, millions of households are struggling financially due to inflation, high interest rates, and rising living costs, which have led to record levels of debt and limited access to credit.
US household income fell by the most in over a decade in 2022, showing the impact of rising costs and the expiration of pandemic relief programs, with the median income dropping 2.3% and marking the third consecutive annual decline, contributing to concerns about the financial well-being of American families.
The United States has a net wealth of $136.8 trillion, with the private sector holding all the wealth while the public sector runs a deficit due to federal debt, and pro-growth policies are essential for economic health.
US home prices reach a record high as the market rebounds, with prices increasing for a sixth consecutive month and offsetting last year's decline, according to S&P CoreLogic Case-Shiller data.
Florida has surpassed New York as the second most valuable housing market in the United States, with its residential property values increasing by $160 billion in the past year due to increased demand from residents escaping high taxes, rising crime rates, and COVID-19 restrictions.
Global wealth experienced a significant decline in 2022, with a 2.7% drop in households' financial assets worldwide, primarily driven by falling asset prices; however, there is optimism for a rebound in 2023 and subsequent years, with projected growth of 6%.
The wealthiest people in the U.S. have seen a significant increase in their wealth, with the richest Americans now holding a total of $4.5 trillion, tied with the record set in 2021, due to rebounding stock markets and the flourishing AI-driven tech industry.
