The Average Household Is A Millionaire With A $1.06 Million Net Worth, According To The Fed — So Why Do People Still Feel Broke?

On paper, Americans have never been richer. According to the Federal Reserve's latest Survey of Consumer Finances, the average U.S. household net worth hit $1.06 million in 2022 — a 23% jump from $868,000 just three years earlier.

That's right. Millionaire status. Technically.

The survey, conducted every three years, captures the total value of assets — from homes and retirement accounts to vehicles and brokerage balances — minus all debts. It includes everything from checking accounts and 401(k)s to investment properties, annuities, and even boats and RVs. But here's the catch: averages don't tell the whole story.

In reality, this number is skewed by the ultra-wealthy. While the average household may clear seven figures, the median net worth — the point where half of households have more and half have less — was just $192,900. That's a pretty big gap, and it says a lot more about how people are actually living.

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Net Worth Is Up. So Are Prices.

Even with growing net worths and slightly higher wages, Americans are feeling the squeeze. Take housing, for example. According to Zillow, the average home value in the U.S. is now $361,263, up 2.1% in the last year. Homes are going under contract in just 26 days — if buyers can afford them.

Ownership is becoming so expensive that younger generations are backing out entirely. The National Association of Realtors says the average age of a homebuyer is now 56, up from 49 in 2023. That's the highest it's ever been, and a clear sign that first-time buyers are aging out before they even get in.

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Then there are the cars. Kelley Blue Book reports that the average new vehicle now costs $48,039, up 43% in the last decade. That's nearly a full year's salary for many Americans.

Wages Aren't Keeping Pace

According to the U.S. Bureau of Labor Statistics, the median weekly wage for full-time workers in Q1 2025 was $1,194 — or about $62,000 per year. While that's up 4.8% from last year, inflation rose 2.7% in the same period. So yes, there's some real wage growth, but it's not enough to offset rising costs across housing, insurance, food, and transportation.

And for many households, those net worth numbers are tied up in assets they can't touch — like a primary residence or retirement accounts. They may technically have a high net worth, but it doesn't help much at the grocery store checkout.

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The Disconnect

The growing gap between what the data says and what people feel is at the heart of America's current economic mood. You might be a millionaire — but not in a way that makes life easier to afford.

As prices rise to reflect the higher averages, they can leave the majority behind. The typical household isn't upgrading to a luxury car or scooping up investment properties. They're just trying to stretch a paycheck far enough to fill the gas tank and maybe save a little for the future.

So yes, the "average" American household is a millionaire. But for most people, it doesn't feel like wealth. It feels like survival.

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