America is becoming increasingly divided along generations. Older households control the majority of wealth, own significantly more homes and have stronger representation in political institutions, while young Americans face more expensive properties, student debt and more difficulty accumulating equity.
This trend is the focus of an analysis by the German publication WELT, according to which the American social model is increasingly shifting the burden to younger generations. Data from American institutions show that there are real economic grounds behind this thesis.
Housing is becoming the most visible boundary between generations
One of the biggest differences is in the real estate market.
According to the US Census Bureau, in the first quarter of 2025, 79% of households headed by someone aged 65 or over owned their home.
For people under 35, the share was only 36.6%.
The difference is huge and has long-term consequences. For older Americans, housing is often an asset whose value has increased significantly in recent decades. For young people, it is increasingly difficult to afford a purchase, especially after the sharp increase in prices and mortgage rates.
A 2026 Pew Research Center survey shows that 87% of Americans believe that it is more difficult for young people today to buy a home than it was for their parents' generation. In 2021, 70% thought so.
Baby Boomers Have Amassed Huge Wealth
The difference is also visible in the accumulated assets.
According to an analysis by the Pew Research Center, households from the Baby Boomer generation owned a total of about $77 trillion in wealth in 2022.
The median net wealth of a household headed by a person between the ages of 58 and 76 reached $432,200. For comparison, households of the same age from the so-called Silent Generation had a median wealth of $335,900, and the generation before them – about $185,300, converted into 2024 dollars.
But even here, the picture is not clear.
Wealth within the baby boomer generation itself is highly concentrated. According to Pew, the richest 10% of households in this age group held 71% of the total wealth of the generation.
This means that the "rich old vs. poor young" contrast is overly simplistic. Not all older Americans are financially secure, but as a group they have significantly more assets.
Young people start life in debt
For young people, the situation is often the opposite.
Federal Reserve data for 2025 show that 25% of Americans between the ages of 18 and 29 have outstanding student loans, and for the group between the ages of 30 and 44, the share is 22%. For people over 60, it is only 5%.
For some younger households, this means that the years in which previous generations began saving for their own home or retirement are now spent paying for education.
The Federal Reserve reports that the average amount of outstanding student debt for people who still have it is in the range of $20,000 to $24,999.
Pew also finds a strong public perception that the system has become harder on young people. 82% of Americans believe that it is more difficult to pay for higher education today, and the same number say that it is more difficult to save for the future.
Political power also remains with the elderly
The economic gap is complemented by a political one.
According to the Congressional Research Service, the average age of members of the House of Representatives at the beginning of the 119th Congress was 57.9 years, and of senators - 63.9 years.
This does not automatically mean that American politics are working against the young. But it shows a clear demographic gap between the population and the people who make decisions.
Older Americans have traditionally had higher political participation, which further increases their influence on elections, budget priorities and social policy.
A huge part of the budget goes to programs related to the elderly population
The difference is also visible in federal spending.
The Congressional Budget Office reports that in 2025, more than half of mandatory federal spending went to Social Security and Medicare. The two programs together accounted for more than a third of all federal spending.
This does not mean that these funds are a “gift“ to the elderly. Social Security is a system in which workers have been contributing for decades, and Medicare is a major element of health insurance for people over 65.
But the budgetary impact is significant.
The CBO projects that Social Security and Medicare spending will continue to rise as the population ages. These two programs are projected to account for 81% of the increase in mandatory federal spending between 2027 and 2036.
Young people also pay the bill for the future
The problem for the next generation is not just how much the government spends today, but how it finances that spending.
In fiscal year 2025, the U.S. federal budget will end with a deficit of about $1.8 trillion, or 5.8% of GDP. The cost of interest on the national debt alone reaches $970 billion.
The higher the debt, the greater the share of future tax revenues that must be used to service it.
This is also one of the central issues in the intergenerational dispute in the United States: whether younger generations will inherit not only more expensive housing and higher education costs, but also public finances with less room for investment in their priorities.
Not everything is the result of the “selfishness” of the elderly
Yet the economic picture requires more nuance.
Much of the wealth gap is a natural result of the life cycle. A 70-year-old has had decades more to accumulate assets than a 30-year-old.
Furthermore, the data shows huge differences within generations. There are millions of older Americans without significant savings, as well as young households with high incomes and significant assets.
But the current combination of high housing prices, education costs, and accumulated national debt is making it harder for a significant portion of young Americans to get started in economic life.
This is precisely why the sense of generational injustice is growing.
According to the latest Pew survey, 80% of Americans believe that it is harder for young people today to cover their basic expenses than it was for their parents. 64% say the same about finding a job.
So the debate in the US is no longer simply about which generation had an easier life. It is about something much more concrete: who owns the assets, who controls policy decisions, and who will have to finance the system for decades to come.
Sources: WELT; Federal Reserve Board; U.S. Census Bureau; Pew Research Center; Congressional Budget Office; Congressional Research Service.
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