Once a symbol of luxury, a million-dollar net worth is now average in the U.S. — here’s how we got here
the staff of the Ridgewood blog
Ridgewood NJ, in the past, millionaires were revered — symbols of success, wealth, and sometimes, envy. Today? Not so much. According to the Federal Reserve, the average (mean) net worth of an American household has topped $1 million for the first time in history. With over 22 million millionaire households in the U.S., being a millionaire is no longer rare — it’s practically mainstream.
But how did we get here? And what does it actually mean to be a millionaire in modern America?
From Exclusive Club to Economic Benchmark
In 1999, the TV show Who Wants to Be a Millionaire dominated ratings, reflecting society’s fascination with the million-dollar milestone. Fast forward to today, and the label “millionaire” has lost some of its luster — largely because 1 in 6 U.S. households now qualifies.
Depending on the metric used (total assets vs. investable assets), millionaire household estimates range from 15 to 22 million. But even the conservative number represents massive growth over the past few decades.
The Millionaire Boom: A Timeline
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1848: Just 50 U.S. households held $1 million fortunes (equal to ~$40 million today), largely concentrated in NYC, Philadelphia, and Southern plantations.
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Late 1800s: The Gilded Age and industrialization raised that figure to 4,000.
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1983: About 2.4 million U.S. households had $1 million+ in 1995 dollars.
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2016: That number jumped to 9.1 million.
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Today: Over 20 million households exceed $1 million in today’s dollars — a tenfold increase in just over 60 years.
The recent surge has been especially steep. Between 2019 and 2022, mean net worth rose significantly due to:
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Elevated pandemic-era savings
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Stock market gains
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Rising real estate values (median housing equity rose from $139k to $201k)
Not All Net Worth Is Created Equal
Despite the rise in millionaires, wealth distribution remains skewed. The median U.S. net worth is just $192.9k, far below the average — a sign that extreme wealth at the top is pulling up the average.
As of last year:
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The top 10% of households held 67% of total U.S. wealth
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In 2019, that share was even higher — nearly 70%
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Inequality has decreased slightly but remains historically high
What Fuels Millionaire Status?
Inheritance Plays a Role — But Not the Only One
Roughly 20% of U.S. households have received an inheritance or wealth transfer. Among millionaire households, that number rises to 45%, with inherited wealth making up nearly 19% of their net worth.
Still, inheritances often reduce inequality, as lower-net-worth households rely more heavily on them. For example:
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A millionaire might inherit $477k, which is just a fraction of their net worth.
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A household with $100k in assets may inherit $89k — nearly doubling their wealth.
The Power of Assets: Stocks vs. Homes
Millionaires typically hold ~40% of their net worth in stocks and securities, giving them:
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Better diversification
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Higher long-term returns
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Easier liquidity for spending or investing
In contrast, lower-net-worth households rely heavily on their primary residence, often comprising 65% of their net worth. That creates challenges in terms of:
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Liquidity
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Exposure to housing market fluctuations
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Limited income-generating potential
Where America’s Millionaires Live Today
In the late 1970s, surprising states like Idaho, Maine, and North Dakota had some of the highest millionaire-per-capita rates — thanks in part to booming farm real estate.
Today, the trend has shifted. Coastal states dominate the millionaire maps, including:
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California
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New York
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Massachusetts
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Connecticut
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Maryland
These states feature:
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High real estate values
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Higher-paying jobs in finance, tech, and medicine
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Greater access to investment opportunities
Meanwhile, rural states have dropped off the list, as commodity-driven fortunes faded and farmland value growth slowed.
Conclusion: The New Normal?
Being a millionaire in 2025 doesn’t carry the same weight it did in 1995. Thanks to decades of asset inflation and rising incomes among the top earners, the term “millionaire” has become more common — but not necessarily more meaningful.
While more Americans than ever are millionaires on paper, many still face real financial challenges. Wealth isn’t just about the number — it’s about how that wealth is structured, how accessible it is, and whether it translates into financial security.
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A million bucks ain’t what it used to be.