America Has A New Type Of Millionaire

Newsweek

04-07-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
A growing number of Americans are joining the ranks of the country's millionaire class, seen by some as evidence that the American Dream is alive and kicking, but dismissed by others as the result of inflation and broader economic trends outside of their control.
According to a new report from UBS, an additional 379,000 Americans became millionaires in 2024, equivalent to over 1,000 per day. As a result, the United States now hosts a greater number than any other country on Earth – just shy of 24 million – and more than China, France, the United Kingdom, Germany, Canada, Japan and Australia combined.
However, "not all USD millionaires are alike," the investment bank said in its report. While the traditional perception of a millionaire may conjure images of lavish lifestyles and sprawling estates, UBS noted that most of these individuals could be classed under the umbrella of "everyday millionaires" – a heterogeneous group consisting of those with assets valued at between one and five million dollars. Globally, the number of these "EMILLIs" has quadrupled since 2000 to around 52 million, who together now account for roughly $107 trillion of the world's wealth.
"The American Dream today looks a little different than it used to," said Andy Smith, executive director of financial planning at investment advisory Edelman Financial Engines.
"It's less about flashy success and more about setting goals, saving consistently, and making smart financial choices over time," he told Newsweek. "For many, reaching millionaire status is simply the result of years of careful planning and sticking to a plan, even when headlines make it tempting to do otherwise."
Photo-illustration by Newsweek/Getty/Canva
According to UBS, the biggest catalyst in the growth of this group has been rising real estate values. In the U.S., according to government figures, median home prices have risen by over 150 percent since the start of this century, with some projections pointing to a further increase of nearly 40 percent by the end of the decade.
David Laibson, a Harvard economist and scholar of wealth accumulation, noted the influence of real estate prices, but also the outsized impact of the stock market on Americans' net worths, given these are often tied to market-linked pension funds and retirement savings accounts.
"When the stock market rises sharply, many U.S. households become millionaires because of appreciation in their retirement portfolios, including both 401(k) and IRA balances," he told Newsweek. However, this link pulls both ways, and Laibson said a sudden downturn would see many lose their millionaire status.
Against the notion that the rise of everyday millionaires signals the resilience of the American Dream, economist Damon Jones similarly told Newsweek that much of this trend stems from asset appreciation and currency inflation, rather than any real increase in how broadly attainable millionaire status has become for those without existing wealth of some sort.
"This doesn't sound like we are looking at rags to riches," he said, noting that the UBS report also mentions that the U.S. has undergone one of the greatest increases in wealth inequality of any country this century.
In its report, UBS also pointed to another factor that impacts America's millionaires both every day and the ultrawealthy: Exchange rates. "If one year the USD is particularly strong, this will push up the apparent growth in wealth of the US vis-à-vis the rest of the world, even if there is no underlying growth to speak of," it said, "while the opposite will occur in years when the USD weakens."
Over the past few years, the U.S. dollar has maintained remarkable value thanks to its status as the world's primary reserve and transaction currency, the global popularity of dollar-denominated assets like U.S. treasuries, and the country's overall economic might. In recent years, the U.S. Dollar Index – which measures its value relative to a basket of major foreign currencies – has remained almost without fail above 100, indicating sustained strength versus its peers.
However, since the re-inauguration of Donald Trump, the index has fallen by around 10 percent – the weakest first six months for a president since its introduction in the 1970s – attributed to a mix of America's growing debt crisis and the impacts of his administration's trade agenda on the country's economic outlook.
Laibson also pointed to the impact of inflation and currency devaluation on the number of millionaires, telling Newsweek that the term now "punches far above its weight."
"Being a millionaire in 2025 is not comparable to being a millionaire 50 years ago," he said. "A household that has a million dollars in 2025 has the same buying power of a household that had $165,000 in 1975."
While America's everyday millionaires have grown in number, this is largely thanks to forces beyond the EMILLIs' direct control, and a change of fortunes for the U.S. economy could halt or even reverse these gains.
But for those still hoping to break into this bracket, Andy Smith of Edelman said the key is long-term discipline and commitment to one's own financial plans, regardless of headlines and periodic economic volatilities.
"Even with market ups and downs, people who stuck with their financial plan and didn't panic during tough times have seen their wealth grow over the years," he told Newsweek. "It's a reminder that saving as much as you can for as long as you can is vital, and it's also a reminder that staying committed to long-term goals really can pay off."