Gen-Xer’s wealth has increased +50% during the pandemic.

Gen-Xers Rebounding from 2008 Great Recession and Housing Crisis

Most Gen-Xers were Millennials when the 2008-09 Great Recession and Housing Crisis hit…and this demographic took the biggest wallop of all from these joined-at-the-hip nightmares.  Jobs disappeared, incomes plummeted, and the housing market tanked.   Many thought this age group would never “make it” professionally or economically.

Guess what?  These former Millennials are now Gen-Xers, ages 41 to 56, and they’ve ricocheted.

According to Federal Reserve data, Gen-Xer’s assets rose by +$13T since Q1 2020 and their aggregate wealth increased +50% during the pandemic.

Gen X Wealth Boom

Fed data indicates that the country’s household wealth distribution during the COVID pandemic has shifted from older generations to those coming into their peak earnings years.  Gen-Xer’s wealth is being buoyed by gains in pension entitlements and equities while their share of consumer debt has gone down.

As of June 2021, Gen-Xers held 28.6% of the nation’s wealth, up +3.9% from Q1 2020.  In dollars, Gen-Xers’ aggregate net worth has gained +50%.  Likewise, the share of wealth held by the Silent Generation (born prior to 1946) and Boomers during the pandemic has gone down.

Another way to think about this Gen-X wealth boom is that about 34.6M Gen-X households added +$13T in assets over 15 months.  This +13T gain in assets is more than the $12.8M gain in assets held by Boomers plus, there are many more Boomer households than Gen-X households…about 7.7M more, or a total of approximately 42.3M households.

In the five quarters of COVID, Gen-X households have more than doubled their equity assets to $10.5T, according to the Fed data.  This amount is now more than 10 times the stock holdings of Millennials though only about half the stock holdings of Boomers.

Gen-X Housing Assets Boom

Gen-Xers’ real estate assets jumped in dollar value as much as that of Boomers, a larger demographic group.

Take a look at this chart on housing assets from the Federal Reserve:

 Demographic        Q1 2020         Q2 2021          Change      Household Counts

Silent                      $4.3T             $4.4T             +$0.1T         14.1M

Boomers                  $13.5T           $15.2T            +$1.7T         42.3M

Gen-X                       $9.4T            $11.1T           +$1.7T         34.6M

Millennials                 $3.5T            $4.2T              +$0.8T         38.1M

The housing crunch that COVID sparked favorably touched many Gen-Xers who already were homeowners.  Those Gen-X homeowners were able to capitalize on the housing boom.  (The younger Millennial demographic, ages 25-40, were less likely to be homeowners during this housing boom and therefore couldn’t “use” the boom to their advantage.)

Welcome, Gen-Xers.  You’ve come a long way.

Thanks to the Federal Reserve and Bloomberg.

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