How is wealth distributed?
Executive summary
Wealth in the United States is heavily concentrated: the top 10% of households hold roughly two‑thirds of total wealth, while the top 1% and billionaires account for a rapidly growing share of assets (Federal Reserve / Statista compilations) [1] [2]. Federal Reserve distribution tables and FRED analyses show concentration rising since 1989, with Baby Boomers holding a plurality of national wealth — about half by some measures — while younger cohorts hold far less [3] [4].
1. The shape of the pile: who actually owns most U.S. wealth
Federal Reserve data compiled by Statista and the Fed’s own visualizations show that wealth is not evenly spread: the top 10 percent of households control roughly two‑thirds of aggregate wealth, and the top 1 percent capture an outsized, growing slice of net worth [1] [2]. Quarterly Fed release tables and the Fed’s interactive distribution charts provide the underlying numbers that drive these headline shares [5] [3].
2. Long‑run trend: concentration has increased since 1989
Multiple Fed‑based series and FRED commentary track the same pattern: wealth concentration rose over the last three-plus decades. FRED’s blog and Fed distribution charts plot percentile groups from 1989 to the 2020s, showing that the gap between the 90th–99th percentile and the middle 50th–90th percentile widened materially over time [6] [3]. VisualCapitalist and Statista visualizations echo that trend: wealth shares at the top grew while middle and lower brackets lost ground [7] [2].
3. Age and inheritance: Baby Boomers dominate the ledger
Generation matters. Fed‑derived breakdowns and Statista summaries show Baby Boomers control a disproportionate share of U.S. household wealth — Statista reports Boomers held about 51.8% of total U.S. wealth in Q1 2024 — while millennials hold single‑digit shares by comparison [4]. VisualCapitalist’s 2025 graphics (using UBS data) also calculate that Boomers account for the largest generation share of total national wealth, reflecting decades of asset accumulation and appreciating real estate and financial holdings [8].
4. Geography and the global context: U.S. remains a wealth hub
Reports focused on ultra‑wealthy individuals show the U.S. hosts a disproportionate share of the world’s largest fortunes: a 2025 USA Wealth Report put the U.S. share of centi‑millionaires and billionaires at roughly 36% and 33%, respectively, and New York City remains a dominant concentration center [9]. These international tallies underline that American wealth concentration is both national and urbanized at the very top [9].
5. What drives concentration: asset composition and policy
Analysts trace concentration to asset ownership patterns — stocks, business equity and real estate appreciate and compound over time, benefiting those already holding assets — and to tax and policy choices that influence after‑tax wealth accumulation. Reporting and analysis highlight that the wealthy gain from asset appreciation and favorable tax treatments, while working‑age households face heavier debt burdens and slower net worth growth [10] [11] [12].
6. Data limits and competing measures: different slices, different stories
Sources rely on distinct datasets and cutoffs: Fed distribution tables, the Survey of Consumer Finances, FRED aggregations, and private wealth reports each measure wealth slightly differently and at different frequencies [3] [5] [11] [9]. That produces variation in headline percentages — but all sources supplied here agree on the core fact of strong concentration [2] [6].
7. Political and narrative stakes: why these numbers matter
Wealth statistics feed policy debates. Progressive outlets and civic groups highlight the social risks of concentrated wealth and call for redistributional reforms; other actors emphasize growth and investment incentives, and some policymakers seek tax changes that could further affect concentration [10] [13]. The Fed’s neutral data release is the common factual baseline that both sides use to argue different remedies [3] [6].
8. What reporting does not say (and what to watch next)
Available sources do not mention precise post‑2025 policy outcomes or the causal effect sizes of specific tax changes on future concentration — those require modeling beyond descriptive Fed and report data (not found in current reporting). Upcoming quarterly Fed tables and FRED updates will show short‑term movements; long‑term shifts will depend on housing markets, equity returns, inheritance flows and legislative choices [5] [6].
Limitations: this analysis uses only the provided Fed, Statista, FRED, VisualCapitalist and wealth‑reporting excerpts; exact percentile shares vary by dataset and publication date, but the consistent finding across these sources is clear concentration of wealth at the top [1] [3] [2].