Introduction
Fashion. Music. Technology. In the past decade, the U.S. has transformed in an abundance of ways - many of which have been directly in front of our eyes. However, one facet of life has experienced the greatest change and Americans have barely noticed: entrepreneurship, and subsequently, net worth. With college becoming more and more of an option, technology creating more and more sources of income, and entrepreneurship gaining more and more appeal as a career path, net worth has steadily increased in the 2010s. However, there’s more factors to attribute to net worth, such as homeownership and salary.
Now, let’s zoom into the past year. After the dip during the pandemic, the housing market has BOOMED and while continuing to grow, it is finally cooling off. Home prices are higher than they have been in a long time, due to the rise in commodity prices, such as lumber, in addition to the steady, high inflation from the economic expansion that this country is experiencing. To keep margins consistent, we may continue to see a small rise in real estate prices, which could indefinitely create a shift in homeownership rate for those in the younger age groups seeking their first home.
In the labor market, which at one point in the past year was laying off employees left and right, wages and salaries are continuing to rise as a result of the lack of supply and immense demand. Because of unemployment benefits, an abundance of people refuse to re-enter the workforce, resulting in the aforementioned scarce supply of workers.
Read this edition of Benzinga Reports for an in-depth look at how all of these factors have affected salary, homeownership rates, net worth, and entrepreneurial activity across the decade and the past year. Discover how lifestyle decisions across different age groups impact these factors, and whether they have been related to each other in the past.
Key Points: Homeownership rate, salary, net worth, entrepreneurship
- Age Groups: Under 35, 35-44, 45-54, 55-64, 65 and up
- Factors researched: Salary, Homeownership rate, Median net worth, Total Entrepreneurial Activity (TEA)
- Age groups with above average salary in 2020 & 2021: ⅗ .
- Age groups with below average salary in 2020 & 2021: ⅖ .
- Age groups with above average homeownership rate in 2020 & 2021: ⅗ .
- Age groups with below average homeownership rate in 2020 & 2021: ⅖
- Age groups with above average annual change in salary: ⅖
- Age groups with below average annual change in salary: ⅗
- Age groups with above average change in homeownership rate: ⅖
- Age groups with below average change in homeownership rate: ⅗
- Age groups with above average net worth in 2010 & 2020: ⅗ .
- Age groups with below average net worth in 2010 & 2020: ⅖ .
- Age groups with above average entrepreneurial activity in 2010 & 2020: ⅗ .
- Age groups with below average entrepreneurial activity in 2010 & 2020: ⅖
- Age groups with above average annual change in net worth: ⅗
- Age groups with below average annual change in salary: ⅖
- Age groups with above average change in entrepreneurial activity: ⅘
- Age groups with below average change in entrepreneurial activity: ⅕
Diving Deeper: Correlations (or Lack of) Between Homeownership & Salary or Net Worth & Entrepreneurship
- Age Groups: Under 35, 35-44, 45-54, 55-64, 65 and up
- Age groups with below average salary and homeownership rate in 2020: 1/5
- Age groups with above average salary and homeownership rate 2020: 2/5
- Age groups with below average salary and homeownership rate 2021: ⅕
- Age groups with above average salary and homeownership rate 2021: ⅖
- Age groups with below average change in homeownership rate and salary: ⅖
- Age groups with above average change in homeownership and salary: ⅕
- Age groups with above average net worth & TEA 2010: ⅕
- Age groups with above average net worth & TEA 2020: 0/5
- Age groups with below average net worth 2010 & TEA 2010: 0/5
- Age groups with below average net worth & TEA 2020: 0/5
- Age groups with above average 10 yr change in median net worth and TEA: ⅖
- Age groups with below average 10 yr change in median net worth and TEA: 0/5
- Age groups with below average salary & above average homeownership rate in 2020: ⅕
- Age groups with above average salary & below average homeownership rate in 2020: ⅕
- Age groups with below average salary & above average homeownership rate in 2021: ⅕
- Age groups with above average salary & below average homeownership rate in 2021: ⅕
- Age groups with below average change in homeownership rate and above average change in salary: ⅕
- Age groups with above average change in homeownership and below average change in salary: ⅕
- Age groups with above average net worth & below average TEA in 2010: ⅖
- Age groups with above average net worth & below average TEA in 2020: ⅗
- Age groups with below average net worth & above average TEA 2010: ⅖
- Age groups with below average net worth & above average TEA in 2020: ⅖
- Age groups with above average 10 yr change in median net worth and below average change in TEA: ⅕
- Age groups with below average 10 yr change in median net worth and above average change in TEA: ⅖
- Age groups with above average net worth and homeownership rate: ⅗
- Age groups with below average net worth and homeownership rate: ⅖
Methodology:
To analyze a possible correlation between salary, homeownership rate, net worth, and total entrepreneurial activity, we examined the change in all these entities for various age groups: under 35, 35-44, 45-54, 55-64, 65+.
About Luke Jacobi
Luke Jacobi is a distinguished professional known for his role as President at Benzinga, a renowned financial media outlet. With a background in business operations and management, Luke brings valuable expertise to his position, overseeing various aspects of Benzinga’s operations. His contributions play a crucial role in the company’s success, ensuring efficiency and effectiveness across different departments. Prior to his role at Benzinga, Luke has held positions that have honed his skills in leadership and strategic decision-making. With a keen understanding of the financial industry and a commitment to driving innovation, Luke continues to make significant contributions to Benzinga’s mission of providing high-quality financial news and analysis.