Housing News

Homeownership Helps Fuel the Rise of 'Everyday Millionaires'

The U.S. minted 379,000 new millionaires in 2024—an average of more than 1,000 per day—according to UBS’s newly released Global Wealth Report. It was the largest annual jump of any country and helped cement the U.S. position as home to nearly 40% of the world’s millionaire population.

What drove the increase of those "everyday millionaires" with seven-figures to their name? The report highlights a long-standing source of wealth accumulation: owning a home. 

The rise in millionaires was driven in part by overall gains in real estate, especially during the COVID-19 pandemic-era housing boom, according to UBS. Homeowners who bought in early and held on have seen their equity swell, in many cases, tipping their total net worth over the million-dollar threshold.

Smart investments in the financial markets also helped to boost wealth.

Indeed, U.S. home values have risen significantly since the beginning of the pandemic five years ago. In May, the median home list price nationally was $440,000, according to the most recent Realtor.com data.

“The median sales price for an existing home has climbed more than 50% over the last six years, taking home equity and homeowner net worth along for the ride,” said Hannah Jones, senior economic research analyst at Realtor.com. “Both the stock market and home prices sit near record highs, boosting the value of assets held by homeowners and investors, resulting in a new wave of high-net-worth individuals.”

Jones’ observation reflects a bigger picture: soaring home prices didn’t operate in a vacuum. Behind the scenes, an extended period of historically low mortgage interest rates helped supercharge those gains.

That’s because more homebuyers jumped into the market to snag those rates, battling it out over a very limited supply of homes. That resulted in bidding wars, offers over asking, and soaring home prices.

The surge in property values helped set the stage for a dramatic rise in household wealth.

“Over a decade of [low] interest rates served as a significant tailwind for Americans’ net worth, a large driver for which is the equity in their homes,” said Vance Barse, wealth strategist and founder of Your Dedicated Fiduciary. 

With limited returns elsewhere, Americans turned to real estate—and watched their investments swell to seven digits in some cases.

UBS also found that Americans born after 1981 now hold the largest share of global real estate assets, even after accounting for mortgage debt. That marks a generational pivot. Instead of betting big on volatile markets, many millennials and Gen Zers are looking to homeownership as a slower, steadier path to long-term wealth.

Still, not everyone is riding the same wave.

“The affordability crisis in this country…is felt by millennial and Gen Z generations because the current interest rate environment and high housing costs,” said Barse. 

However, Barse noted that the great wealth transfer between generations is underway. Younger generations may inherit money and property from older family members, helping them to purchase homes they couldn’t otherwise afford.

For others, the hope lies in mortgage rates and home prices eventually falling and more homes hitting the market.