Goldman Sachs confirms a generational shift in how Americans build wealth
For the first time since World War II, equities have overtaken real estate as the dominant driver of American household wealth.
Goldman Sachs, in a note published July 23, said that "equity gains have been the dominant driver of household wealth accumulation and the main contributor to a positive wealth effect on consumer spending."
The numbers behind that conclusion reflect a decisive and accelerating tilt. According to Goldman's family office data cited in the source material, public equity allocations climbed to 31% in 2025, up from 28% in 2023.
Private real estate and infrastructure allocations, by contrast, held at just 11%.
Equity allocations among American households are now approaching 50% of financial assets, a level that surpasses the peaks recorded during the dot-com era.
Real estate's role at the middle
None of this erases homeownership from the American wealth equation. For middle-income households, real estate remains the single most consequential asset most families will ever own.
Lawrence Yun, chief economist at the National Association of Realtors (NAR), said in June 2026 that "homeowners will continue to build wealth, while renters are simply spinning their wheels," projecting the typical homeowner will gain approximately $16,000 in wealth this year.
But the balance is shifting, particularly at the upper end of the market where brokers are competing hardest.
According to ATTOM's fourth quarter 2025 US Home Equity & Underwater Report, 44.6% of mortgaged residential properties were equity-rich, down from a peak of 49.2% in mid-2024.
The share of seriously underwater loans nudged up to 3%, though it remained well below pre-pandemic norms.
Rate environment sharpens the divide
The Federal Reserve's rate-hiking cycle, which began in 2022, helped crystallize this realignment.
The average 30-year fixed-rate mortgage rose to 6.58% for the week ending July 23, its highest level in nearly 12 months, as surging oil prices reignited inflation fears and pushed Treasury yields to their loftiest point since early 2025, according to Freddie Mac's Primary Mortgage Market Survey (PMMS).
With financing costs elevated, leveraged real estate accumulation has slowed, and wealthier households have channeled more capital into liquid equity markets instead.
Goldman's outlook is not a lasting write-off for property. The bank indicated real estate could recover meaningful ground if interest rates fall.
What it identifies, however, is a reordering of priorities among the high-net-worth buyers who represent the most active segment of the upper-tier purchase market.
That has practical consequences for brokers. Clients arriving at the transaction table today — particularly move-up buyers, portfolio investors, and all-cash purchasers — are increasingly framing their financial position around stock portfolios rather than accumulated home equity.
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