US Wealth Rises $26 Trillion as Inflation and Housing Costs Strain Households

The wealth of American households has increased by about $26 trillion since the end of former President Joe Biden’s administration, but persistent inflation, rising housing costs and unequal investment gains are leaving many families struggling to feel the benefits of the country’s economic expansion.

Household wealth rose by 16.5 per cent between the end of Biden’s presidency and the second quarter of 2026, supported partly by strong stock market performance linked to the rapid expansion of artificial intelligence infrastructure.

However, the gains have been uneven. Federal Reserve data show that the wealthiest one per cent of Americans increased their share of national wealth, while households below that group saw their relative share decline.

The AI investment boom has fuelled demand for computing infrastructure and contributed to rising stock valuations. Although the resulting gains have supported consumer spending, households that depend mainly on wages rather than investment income have benefited less directly.

Spending across the economy has continued to grow in dollar terms. However, after adjusting for inflation, consumer spending is expanding at roughly the same pace as before the COVID-19 pandemic. This means households are spending more money without necessarily enjoying a comparable improvement in purchasing power.

Higher prices for gasoline and ground beef have added to the pressure. Import tariffs and increased energy costs associated with the Iran conflict have also contributed to inflation, complicating efforts to reduce the cost of living.

Housing remains a particularly difficult expense. Rising bond yields have pushed US mortgage rates more than one percentage point higher over the past year, making home ownership increasingly difficult for prospective buyers.

The situation presents an economic challenge for President Donald Trump, who promised to bring down prices during his presidential campaign.

Although the economy continues to generate wealth, the unequal distribution of gains and persistent living costs raise questions about how broadly Americans are benefiting from economic growth.