In the US, a wealth boom and a price shock collide
SPY•US household wealth rose 16.5%, or about $26 trillion, from the end of the Biden administration through mid-2026, while gains were concentrated among the wealthiest households. Spending has held up, but inflation and rising mortgage rates continue to strain households.
1. Wealth gains spread unevenly
The AI buildout and broader market gains have lifted household wealth, but the top 1% gained a larger share of national wealth between the end of the Biden administration and the second quarter of 2026. Overall household wealth rose 16.5%, or about $26 trillion, while less than half a trillion dollars of the increase went to the least-wealthy half of households.
2. Spending and prices
Household spending continues to climb in dollar terms, and research cited in the article indicates spending among lower-income and lower-wealth households is holding up. Adjusted for inflation, however, spending is growing at about the same rate as before the pandemic, as households pay more to keep pace with prices. Hourly wage growth and the Consumer Price Index have risen at about the same pace, while gasoline and ground beef prices have soared.
3. Housing remains strained
Home affordability has worsened, with mortgage rates rising more than a percentage point over the past year as bond yields increased. The article also cites import tariffs, energy costs associated with the Iran war and the AI boom as sources of persistent price pressure.
