Wealth by Percentile Commentary

The Top 1% Holds More Than the Bottom 90%

As of Q3 2025, the wealthiest 1% of American households control 31.7% of total household net worth, approximately $57.6 trillion. The bottom 50%, comprising roughly 65 million households, hold just 2.5%, or about $4.5 trillion. The top 1% alone holds more wealth than the entire bottom 90% of American households combined.

This level of concentration is not historically normal, even for the United States. In 1989, when the Fed’s Distributional Financial Accounts begin, the top 1% held about 22.8% of wealth while the bottom 50% held 3.5%. The divergence has been steady and accelerating since the 1980s, driven by asset price appreciation that disproportionately benefits those at the top.

A Sliver of Progress at the Bottom

There is a small bright spot. The bottom 50%’s share grew from a nadir of 0.4% in 2011 to 2.5% today. In dollar terms, this group went from holding essentially nothing to approximately $4.5 trillion. Much of this gain came from rising home values (the one major asset many lower-wealth households own) and pandemic-era stimulus that boosted savings briefly.

But context matters: even at 2.5%, the bottom half of America holds a sliver of the pie. The average net worth for the bottom 25% of households is negative $13,000, meaning they owe more than they own. For these families, “net worth” is a liability, not an asset.

The Asset Ownership Divide

The fundamental driver of wealth inequality is asset ownership. The top 10% own roughly 89% of all individually held stocks and mutual fund shares. They own the majority of business equity. While homeownership is more broadly distributed, even there the top decile holds a disproportionate share through higher-value properties and multiple homes.

When the S&P 500 rises 20% in a year, it is not “Americans” getting wealthier in any even sense. It is primarily the top decile (and especially the top 1%) that captures those gains. For the bottom half, whose wealth is concentrated in housing (if they own at all) and durable goods, stock market performance is largely irrelevant to their balance sheets.

Concentration Accelerating Since the 1980s

The trend toward concentration has deep structural roots. Financialization of the economy, decline of unions, tax policy favoring capital gains over labor income, and the rise of technology-driven winner-take-all markets have all contributed. The 2017 Tax Cuts and Jobs Act further reinforced these dynamics by reducing rates on investment income and corporate profits.

International comparisons underscore the American extreme. Among OECD nations, the U.S. has the highest levels of wealth concentration, exceeding even traditionally unequal economies.

Policy Implications

The policy debate around wealth concentration touches on wealth taxes (proposed but never enacted at the federal level), estate and inheritance tax reform, capital gains taxation, and broader structural reforms to expand asset ownership. Whether through “baby bonds,” expanded retirement savings access, or homeownership programs, the central challenge is clear: without ownership of appreciating assets, no amount of income growth will close the wealth gap.