An average American is now a millionaire — in Federal Reserve data

The average American household is now worth more than $1 million, according to the latest Federal Reserve data, marking a new milestone in national wealth.

Fueled by a stock market surge, a boom in private assets and AI-driven industries, and a resilient though cooling housing market, America’s overall household wealth continues to soar — even as inequality remains stark.

According to a Sherwood News report, citing he Fed’s figures, US households collectively held $167 trillion in wealth as of the end of the second quarter.

With roughly 132 million households nationwide, that translates to an average net worth exceeding $1 million per family — a statistic that has recently gone viral on social media.

But if the average household is now a millionaire, why doesn’t it feel that way for most Americans?

One reason is that economic confidence remains below pre-pandemic levels, according to the report, citing University of Michigan’s consumer sentiment survey.

The survey found that families in the bottom two-thirds of the income scale report particularly low confidence, even more so than during the 2008 financial crisis.

Top-heavy wealth

Wealth in the US is heavily concentrated at the top.

Fourteen of the 15 richest people in the world are American, according to the Bloomberg Billionaires Index, pushing the nation’s average wealth to record highs.

Federal Reserve data show the top 1% now control $52 trillion, nearly a third of total US wealth, roughly equal to the combined wealth of the bottom 90% (~$54 trillion), fueled by soaring stock and housing markets over decades.

Mean averages can be misleading when extreme outliers like Elon Musk are included.

A clearer picture comes from the median: the “middle” American household.

Fed data from 2022 put median household wealth at $193,000, likely a bit higher today, meaning the typical US household is worth closer to $200,000.

For lower-wealth families, most assets are tied up in home equity, which grows in value but remains illiquid, so it doesn’t necessarily feel like newfound wealth.

With inputs from agencies