The top 1% richest individuals in the United States have achieved an unprecedented level of wealth, now reaching a collective total that allows them to afford a staggering 99% of all homes across the country, based on findings from a recent report by Redfin. As of the end of 2024, the combined net worth of the wealthiest segment of the U.S.
economy has soared to a record $49.2 trillion, while the cumulative value of nearly 100 million residential properties has reached approximately $49.7 trillion, highlighting the growing divide between the rich and the average citizen. The top 1% maintain a diversified portfolio, yet they own a disproportionate 13.4% share of real estate in the United States.
This information comes from the insights of Chen Zhao, the Lead Researcher at Redfin Economics. Zhao states, “The rise in home values over the past decade has driven similarly rapid growth in the net worth of this elite group.” The implication is clear: as property values soar, so too does the wealth of the individuals who can already afford the steep prices. A stark perspective on this wealth distribution reveals that the top 1% could hypothetically acquire every single home in the nation without incurring any debt.
This reality stands in sharp contrast to the millions of households across the U.S. that grapple with the challenge of purchasing or maintaining even a single home, as expressed by Zhao: “It is a striking example of the concentration of wealth in America that highlights the catastrophic financial hurdles facing most families.” According to Redfin’s analysis, approximately 1.3 million households fall within the wealthiest 1%, a classification determined by the Federal Reserve to include individuals with a net worth of at least $11.2 million.
This concentration of wealth has far-reaching consequences, particularly as real estate asset growth has significantly outpaced wage increases over the last few decades, thereby widening the gap between the highest and lowest wealth brackets. Zhao articulates this imbalance succinctly: “Asset growth, including real estate, has consistently outpaced wage growth, increasing the gap between the top and bottom wealth brackets.” In stark contrast, the lower 50% of wealth holders, representing 66.6 million U.S.
households, have a collective net worth totaling a mere $3.9 trillion. This disparity further emphasizes the economic divide characterized by soaring property values and stagnating wages. Recent data from Redfin indicates that U.S. home prices experienced a 0.6% increase month-over-month in January, marking a 5.4% rise year-over-year.
Such trends reinforce the notion that the housing market is thriving for the wealthy, while many American families continue to struggle to secure a stable home..