Young Americans' Net Worth is Higher Than That of Hispanic Households, New Report Shows

Americans under the age of 40 are richer than ever, increasing their median net worth to unprecedented levels. But despite upward mobility, they are still wealthier than the average Hispanic household, a new report shows.

For Americans between 25 and 39, median wealth hit $80,500 in 2022, up from just $23,750 in 2010, in 2023 dollars to account for inflation, according to a recently released report by the U.S. Department of Treasury.

Wealth was reportedly turbocharged by the stimulus checks and roaring bull market following the 2020 pandemic, Axios reports. But there's a caveat, as careers have not been able to keep up.

The Treasury notes that 61% of men haven't graduated from college— and their earnings have been declining, in real terms, for 30 years. At the same time, some 42% of Americans with student loans between ages 25 and 39 don't even have a bachelor's degree.

Likewise, the proportion of men between 25 and 39 with any job has been falling steadily for more than 30 years. It was almost 95% in 1990. It's now been below 90% for over a decade, according to Axios.

The new report shows the median young American already having a higher net worth than Latinos in the U.S., even when the latter's wealth has grown dramatically in the past few years.

The U.S. Latino economy grew by 13% from $3.2 trillion in 2021 to $3.6 trillion in 2022, according to a September report by economic think tank Latino Donor Collaborative and Wells Fargo. The report is based on data from 2022, the most recent year for which information is publicly available. It includes data from the U.S. Census Bureau, the Bureau of Economic Analysis and the Bureau of Labor Statistics, among others.

By 2022, the median net worth of Hispanic households reached $63,400— 3.17 times higher than in 2013, when adjusting for inflation. Increasing homeownership rates, rising home prices and a surge in Hispanic-owned businesses have all contributed to steady growth, the HPW reported.

Interestingly, according to the September study, Latino economic growth is expanding at a faster rate than that of non-Latinos in states such as Colorado, Washington and Georgia.

Between 2021 and 2022, the U.S. Latino population increased by 1.65%, while the non-Latino population grew by just 0.08%. This growth has translated to the Latino population being significantly younger than its peers, with a large share of Latinos who have yet to enter the labor market.

As a result, the U.S. economy is increasingly reliant on the U.S. Latinos to replenish the working-age population, according to CNBC.

"A young Latino in the U.S. turns 18 every thirty seconds," Sol Trujillo, Latino Donor Collaborative chairman, said. "Leveraging the unique and powerful opportunity presented by the U.S. Latino market will benefit every American."