US Income Inequality Shrinks as Top Household Wealth Jumps 31%

Key Facts

1The median American family's income rose 7% in inflation-adjusted terms between 2021 and 2024 according to Fed data.

2The average real income of families in the top 10% of earners fell 14% to $652,000.

3Median net worth for the top 10% of income earners rose 31% from 2022 to 2025, driven by asset gains.

The median American family's income rose 7% in inflation-adjusted terms between 2021 and 2024. Axios reported, citing Federal Reserve data, that the average real income of families in the top 10% of earners fell 14% to $652,000 during this period.

Median net worth for the top 10% of income earners jumped 31% between 2022 and 2025, driven primarily by asset gains. This trend highlights a compression in income inequality as a tight labor market boosted lower-bracket wages, even as wealth concentration in stocks and housing increased for the wealthiest households.