Which is a better investment: buying a home or investing in stocks?
Since 1995, stock prices have outperformed home prices by a factor of four, but which is actually the better investment for building wealth?
Do you want to get rich? Get older.
That’s what the data tells us about America’s net worth.
The average American in their 50s has a net worth of $1.4 million, according to a report from financial services firm Empower. The average person in their 60s is worth $1.6 million.
In contrast, the average 20-something is worth just $127,730.
This number is an estimate extracted from anonymous Empower user data for October 2025. But they are consistent with the findings of the Federal Consumer Finance Survey, a large survey released every three years.
The last federal survey conducted in 2022 showed that the average net worth of Americans ages 50 to 54 was $1.1 million, and $1.4 million for those ages 55 to 59.
Both reports show that American households are getting wealthier as they age, dramatically over several decades.
The Secret to Building Wealth: Stocks, Home, and Time
How did America’s elderly become so wealthy?
Financial experts cite three main factors: stocks, housing, and time.
The S&P 500 has risen 256% over the past decade, or about 13.5% annually, according to a January 10 analysis by The Motley Fool.
“Over the past 20 years, the last three years alone, the stock market has exploded, and we’re starting to hear people say, ‘I never thought I’d have so much wealth,'” said Ryan Victorin, vice president and financial consultant at Fidelity Investments.
And it’s a key reason why so many Gen Xers and Baby Boomers are millionaires. If you invest a large amount of money in stocks and their value increases by 10% every year, it won’t take many years for your balance to double in value.
“The average portfolio tends to double every seven to 10 years,” says Victorin. “If you look at it over a 40-year period, it’s a significant doubling.”
home is a piggy bank
Home values have also increased significantly over the past decade.
Home prices typically do not rise as quickly as stock prices. However, housing acts as a huge piggy bank. When you take out a mortgage, you enter into a multi-year equity building cycle in which your payments and the value of your home increase over time.
Homeownership rates increase with age, and older Americans are more likely to have significant equity in their real estate.
Older Americans also build wealth through inheritance. The cumulative chance of inheriting money increases with each decade of life.
“When you think about people in their 50s inheriting a home, they already own a home,” said Colin Day, a certified financial planner with Mercer Advisors in St. Louis.
Before we get into a detailed discussion of net worth by age, we should note one obvious discrepancy in the numbers: the difference between the mean and median.
According to Empower, the average person in their 50s is worth about $1.4 million. But this is a mathematical average, and the ultra-wealthy make this number even higher.
The “median” in the 50s – imagine the middle number on a long list of numbers – is worth a more modest $192,964.
This is America’s average net worth per decade
The breakdown of net assets by decade is as follows:
20s
Average net worth: $127,730
Median net worth: $6,689
Many Americans start their 20s in college, and many graduate with debt. Until you have enough savings, your net worth will likely be negative.
“At the end of the day, your 20s are where you go back to zero,” says Jonathan Swanberg, a certified financial planner in Houston.
People in their 20s may also be struggling with car debt or credit card debt.
Financially speaking, the last 10 years have been spent primarily “trying to get back on my feet,” said Liz Gillette, a certified financial planner in Edgewater, Maryland.
30s
Average net worth: $321,549
Median net worth: $24,508
Once upon a time, Americans expected to own a home in their 30s. no longer. In 2025, the median age for first-time homebuyers was 40 years old.
Many people in their 30s have small children. That means childcare.
“There’s no doubt that your expenses will increase as you reach your 30s,” says Gillette.
On the plus side, Victorin says that as a 30-something, he is “starting to establish himself in his career.” “Maybe you got a promotion or two.”
And in your 30s, it took several years to start building up your retirement savings.
“You don’t have the ability to compound interest yet, but you’re saving your paycheck,” Swanberg says.
40s
Average net worth: $770,892
Median net worth: $76,479
The past decade is the time in your life when “the effects of compound interest start to show,” Gillette said.
People in their 40s are in their prime earning years. When your child is old enough to attend public school, childcare fees decrease.
Still, “most people are still suffering at this point,” Swanberg said. “They’re still trying to get a down payment on a house. They’re still trying to pay for their kid’s baseball trip.”
50s
Average net worth: $1.4 million
Median net worth: $192,964
This is the time when many Americans reach their peak incomes. If you own a home, it could be your biggest asset.
“I think this is a place where people can see the impact of their real estate choices,” Gillette said.
Maybe you’re struggling with college costs. But it takes 30 years to build up retirement savings.
“When you’re 30 years into your career, it really starts to mean something,” Swanberg said.
60s
Average net worth: $1.6 million
Median net worth: $290,920
According to data from Empower, people in their 60s have more wealth than any other age group.
“This is your peak,” Gillette said.
Your 60s may be your 10th year to pay off your mortgage. It can be an empty nester, so you spend less.
The 60s are also traditionally the decade of retirement. You may start the decade earning as much as you ever have. Eventually, you’ll probably end up collecting Social Security and dipping into your savings.
70s
Average net worth: $1.5 million
Median net worth: $232,712
Generally speaking, net worth begins to decline in the last decade. Perhaps he has quit his job. I’m using up my savings.
However, your net worth may not decrease by much. The stock market has been doing well lately, and many retirees are finding they can live off profits alone.
“Anyone who has retired in the last 10 or 15 years has retired into the luxury market,” Victorin said.
