Gen X The Only Generation To Rebound From The Great Recession
The Great Recession has had a lingering impact on U.S. consumers, businesses and the economy, and Pew Research reports that Generation X is the only generation to have recovered the wealth lost during the crash.
Pew notes that Generation X was hit particularly hard by the recession—which began in December 2007 and ended in June 2009. Generally newer to the housing market and having bought at peak prices and taken on more mortgage debt, they lost more wealth than the other generations. Gen X households’ median net worth declined 38 percent from 2007 to 2010, while Baby Boomers slipped 26 percent and the Silent Generation declined 14 percent. Pew points to Boomers and Silent Generation households having more of their wealth in financial assets rather than their primary residences. The Great Recession hit Millennials in employment and earnings, but not so much in wealth destruction, as they had little to lose.
Despite the recession’s hit on Gen X, they have rebounded more readily than the other generations as home and stock prices have risen. Pew reports that since 2010, the median net worth of Gen X households have risen 115 percent, and in 2016—the most recent year with available data—the typical household surpassed where it stood in 2007—$84,200 vs. $63,400. In comparison, while the Boomer and Silent Generations’ median wealth exceeds Gen X, in 2016 it remained below where it was in 2007.
Pew attributes the rebound to several factors, including the recovery of home equity, a stronger recovery in financial assets than older generations, and, unlike their senior counterparts, Gen Xers remain in prime working age.
For more on Pew Research’s findings, click here.