Having a house with a two-car garage, white picket fence, and bank account stocked with sizable savings feels like a fading dream for many Americans. But the aspiration is alive and well for the 379,000 U.S. citizens who became millionaires last year.
The U.S. minted over 1,000 new millionaires a day in 2024—including weekends—as the proportion of Americans in the ultra-wealthy club swelled by 1.5%, according to new data from investment bank UBS.
In fact, the 50 states now host the greatest number of USD millionaires in the world—four times as many as China, and more than that of France, the U.K., Germany, Canada, Japan, and Australia combined.
While much of this millionaire explosion can be attributed to rising real estate prices, the U.S. stock market’s record year was also a key money driver.
The rise of the ‘everyday millionaire’
While people might envision millionaires as jet-setting, Prada-wearing elite members of society, the UBS report points out a growing number of “everyday millionaires” stepping into the fold—characterized as people with assets between $1 million and $5 million.
This cohort held about $107 trillion in total wealth at the end of last year—more than four times the amount they owned at the turn of the millennium. In 2000, there were only 13.27 million everyday millionaires, but by the end of 2024, the group grew to 52 million people worldwide. Comparatively, millionaires with more than $5 million in assets hold about $119 trillion globally.
The biggest driver of their wealth has been rising real estate values—a long-term upwards trend that is minting new millionaires globally, says the report. However, Americans are a bit different. While real estate and mortgages account for 30% of their wealth, 19% is wrapped up in insurance and pensions, and a whopping 37% is tied to securities and other financial instruments. U.S. investment strategies are paying off, like corporate and mutual fund shares, which made way for the largest cohort of millionaires to join the ultra-wealthy club.
But if you’re not part of the club yet, don’t worry: the number is only expected to increase. A great wealth transfer of $83 trillion is expected to flood global markets over the next 20 to 25 years, with $74 trillion anticipated to be passed between generations. As parents pass down their money to their Gen X, millennial, and Gen Z kids, new millionaires will continue to be minted at high rates for decades.
The American Dream is still alive—for the top
The American Dream seems to be a dying ideal for many U.S. citizens as housing costs go through the roof, groceries become unaffordable, and jobs are being disrupted.
America’s top 20% household earners—averaging a net worth of $4.3 million—accounted for about 71% of the U.S.’s total wealth at the end of 2024, according to data from the Federal Reserve. Meanwhile, the bottom half of American households, averaging about $60,000 in wealth, owned just 2.5% of the country’s wealth. For the vast majority of U.S. citizens, joining the millionaire club still looks like a pipe dream.
While launching the next big AI startup or fintech company is unrealistic for many, average Americans are building their wealth through other channels. Insurance and pension plans—like 401(k)s—have been a popular method to grow wealth steadily, even if Gen Z isn’t fully on-board yet. And despite how poor the markets have looked as of late, stocks and other financial investments are known to drive growth extremely quickly, especially in foreign markets.
For those hoping to boast a seven-figure net worth by getting into the growing world of home ownership, self-made real estate millionaire Barbara Corcoran has a critical piece of advice. It’s easy for people to gawk at mortgage rates, but the Shark Tank investor says it’s out of anyone’s control, and it’s best to make the jump.
“I would say, get out there…you need one more point to bring everybody out into the market, and what’s going to happen is you’re going to pay more for the house,” Corcoran said in a 2024 interview with Bloomberg. “Wait until you see what happens with prices when interest rates come down another percentage point.”
This story was originally featured on Fortune.com
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