The Rise of America’s Millionaire Class: Is $1 Million the New Average?

Neil Caron
May 20
3 min read

The American Dream has long been synonymous with achieving millionaire status — a financial milestone that once signified elite wealth and rarefied privilege. But today, with inflation and asset appreciation driving up net worths, a million-dollar nest egg is becoming more commonplace.

According to recent data from the Federal Reserve, the mean net worth of American households has crossed the $1 million mark for the first time, with an estimated 22 million households now holding at least $1 million in assets. That’s roughly one in every six households. But what does this mean for the average American? And is a million dollars still a ticket to financial security?

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The average American household now has a net worth of $1.06 million.
Asset appreciation, particularly in real estate and stocks, has driven a surge in millionaires.
Over 22 million U.S. households hold $1 million or more in assets.
The top 10% of households control 67% of all U.S. wealth.
Despite the rise in millionaires, the median net worth remains significantly lower at $192,900.

The Making of a Modern Millionaire

In the late 19th century, millionaire status was almost exclusive to industrialists and large-scale landowners. Fast forward to the 21st century, and the millionaire club is far more crowded. Today, the recipe for becoming a millionaire includes asset growth, market gains, and for some, strategic inheritances.

According to Neil Caron, Area Manager at CMG Mortgage, “Homeownership has been a crucial driver in wealth building for many American families. But with home prices skyrocketing in recent years, the challenge is no longer just buying a home but finding one that fits your budget.”

How Millionaires Are Made

While some millionaires inherit their wealth, the majority have built their fortunes through asset accumulation. The Federal Reserve reports that over 45% of millionaires have received some form of wealth transfer, with the median inheritance valued at approximately $477,000.

However, rising asset prices, particularly in real estate and stock markets, have been the primary drivers of millionaire growth in recent years. The median value of a home rose from $139,000 to $201,000 between 2019 and 2022, while stock market gains during the same period helped inflate net worths for millions of Americans.

The Geography of Wealth

Interestingly, where you live can significantly impact your millionaire potential. In 1979, states like Idaho and North Dakota boasted a high concentration of millionaire households, driven largely by farm real estate wealth. Today, coastal states like California, New York, and New Jersey dominate the list, thanks to soaring property values and lucrative tech and finance sectors.

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At ReadySetLoan, we’re all about helping you navigate the road to financial independence. Whether you’re looking to leverage your home equity, invest in a second property, or strategize for future wealth building, our resources and mortgage expertise can help you get there. Visit ReadySetLoan to learn more about how you can turn your home into a wealth-building tool.

The Bottom Line

Becoming a millionaire may be more common today, but the financial dynamics behind that wealth are more complex than ever. With income inequality on the rise and asset appreciation driving much of the net worth growth, the question isn’t just how many millionaires there are — it’s how many Americans are truly financially secure.

Ready to discuss your wealth-building strategy? Connect with ReadySetLoan today and see how we can guide you on the path to financial freedom.