What Does It Mean to Be Wealthy in America Today? 2025 Update

grace264
Jul 21
2 min read

Updated: Aug 7

These days, more people are defining wealth by happiness, not just dollars.But when it comes to building long-term, generational wealth? Real estate continues to be one of the most reliable ways to get there.

What’s the New “Wealthy” Standard?

According to Charles Schwab’s 2025 Modern Wealth Survey, Americans now view a net worth of $2.3M as the benchmark for being “wealthy.” That’s slightly down from last year’s $2.5M — but still far above the average person’s financial reality.

Interestingly, money alone isn’t what people associate with wealth anymore.Today, happiness, health, relationships, and life experience are considered just as important.

Generational Differences in Wealth Expectations:

Net Worth to Feel “Wealthy”

Gen Z: $1.7M
Millennials / Gen X: $2.1M
Baby Boomers: $2.8M

Net Worth to Feel “Financially Comfortable”

Gen Z: $329K
Millennials: $847K
Gen X: $783K
Baby Boomers: $943K

These numbers reflect reality: rising costs, student loans, and housing challenges have caused younger generations to adjust their expectations.

Real Estate: Still the Foundation of Wealth

Even as definitions of wealth shift, homeownership remains a key driver of financial security.

Home values have risen 57% in the past decade.
About 1 in 3 homeowners now hold enough equity to exceed federal capital gains exemptions.
By 2030, this figure is expected to reach 56%.

This isn’t just about having a place to live — it’s about building future opportunities:retirement security, debt reduction, educational support for the next generation, and more.

In the era of the Great Wealth Transfer, real estate remains the single most important asset passed down between generations.

Why It Still Matters Today

As Hearthfire Holdings CEO Sergio Altomare points out, wealth today isn’t just about income — it’s about having stable, appreciating assets like real estate. A home builds equity, offsets inflation, and serves as a form of forced savings.

This equity benefits not just homeowners today but also future generations through inheritance, loan leverage, and financial security.