Millennials might have entered the pandemic worried about their finances, but five years later, their wallets are thriving more than ever. According to Federal Reserve data, millennials' total net worth has nearly quadrupled since 2019, growing from $3.94 trillion in Q3 2019 to $15.95 trillion in Q3 2024. They've not only weathered the post-pandemic years but have also accumulated wealth faster than older generations.
Here's what changed during the last five years.
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Millennials Saved And Invested
When the pandemic hit, millennials found themselves with something they hadn't had before, time and stimulus money. Many of them redirected that cash toward investing.
According to financial services company Wealthfront's analysis, the proportion of its millennial clients who are millionaires increased by 144% over the last five years. Meanwhile, the proportion of Wealthfront millionaires among Gen Xers only increased by 31% over the same time period, and decreased among baby boomers.
Wealthfront's data shows that their millennial clients have put time-tested investment strategies into practice even more than other generations. Even as COVID disrupted financial markets in March 2020, millennials maintained more stable monthly deposits than older generations. That, combined with a long-term investing mindset, allowed them to capture significant market appreciation.
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The Real Estate and Retirement Boom
Another major factor fueling millennial wealth growth has been real estate. As home prices skyrocketed between 2020 and 2024, millennial homeowners saw their equity balloon, contributing roughly $2.5 trillion to the generation's net worth, according to Wealthfront. Even though rising mortgage rates made homebuying tougher in recent years, those who purchased earlier in the pandemic have benefited enormously from appreciation.
Millennials' retirement savings have also gone up quite a bit. Their IRA balances rose by more than 110% since March 2020, more than double the growth in IRA balances held by Gen X, according to Wealthfront.
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What You Can Learn From Millennials
The millennial wealth boom didn't happen overnight, and it wasn't luck. It came from consistency and a willingness to invest even during uncertain times. If you want to achieve the same financial success, start by automating your savings and contributions so you're building wealth without thinking about it.
Keep your portfolio balanced with a mix of stocks, bonds and cash, and dont try to time the market when things get volatile. Just stay consistent, keep investing through the ups and downs and let compounding do most of the heavy lifting.
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