Federal Reserve Reports Widening US Wealth Gap and Debt Stress

The Federal Reserve released its Survey of Consumer Finances on Friday, revealing a widening wealth gap and deteriorating financial stability for many United States households between 2022 and 2025. While the real median family net worth rose 2% to approximately $216,000, these gains were concentrated among affluent and older populations. Median wealth for the top 10% of earners increased by 31%, and those aged 75 and older became the richest age group with a median net worth of $505,000.

Conversely, financial health declined for lower-income and younger demographics. Wealth decreased for the bottom 40% of earners, with the bottom fourth of households seeing their net worth drop by more than 50%. Black families experienced a 25% decline in median wealth, and individuals under 35 saw a 23% decrease. These disparities are attributed to strong stock market performance benefiting those with significant assets.

Debt stress has reached levels not seen since the aftermath of the Great Recession. The share of families reporting they are behind on loan payments rose from 12% in 2022 to nearly 20% in 2025. Additionally, families with payment-to-income ratios exceeding 40% increased to 8.6%, the highest level since 2013, while the use of buy-now, pay-later programs grew from 7% to 12%. Despite a 7% rise in inflation-adjusted median family income to $82,200, real average income dropped 6% amid high inflation rates.