Wealth Growth and Rising Inequality Gaps
There was a significant increase in household wealth in OECD nations from the year 2009 to 2021, with net worth relative to disposable income rising from 175% to 300%, only to drop again due to inflation and interest rate hikes in the period of 2022 to 2023. Wealth concentration diminished somewhat in the late 2010s, aided by rising housing prices benefiting middle- and low-income homeowners. The richest 10% reportedly own around half of the entire wealth, while the top 1% of the population owns more than the bottom 40% combined.
Housing affordability and demographic divides
Homeownership, the factor that was supposed to contribute to wealth equality, is losing its role. Young people buy their first homes later compared to previous generations due to exorbitant housing prices, as well as high mortgage rates that have appeared since 2021. Young people with parents who own homes are more likely to buy a house themselves, in this way benefiting from the wealth inherited from their families. In addition to age factors, the report also demonstrates some surprising differences in wealth between genders and between people with different backgrounds or socioeconomic statuses.
