Prehn Institute: Next 9% Gained More US Wealth Than Top 1% Between 2000 and 2026

London, United Kingdom, November 9th, 2026, FinanceWire

The Prehn Institute has published research examining the distribution of US household wealth gains between the first quarter of 2000 and the second quarter of 2026. Of the $143.6 trillion increase recorded over that period, households ranked between the 90th and 99th wealth percentiles received 36.6 per cent, compared with 33.9 per cent for the top 1 per cent. When the comparison begins in 2020, the top 1 per cent leads instead, while the bottom half of US households receives a considerably smaller share in both periods.

These findings appear in The Hidden Regressive Tax, a research report by Felix Nikolas Prehn, economist, tech founder and former investment banker. Published on Zenodo (https://doi.org/10.5281/zenodo.22961540) as a preprint on 25 September 2026, the report uses the Federal Reserve’s Distributional Financial Accounts (https://www.federalreserve.gov/releases/z1/dataviz/dfa/index.html) to compare wealth gains across four household groups and examine their relationship with asset ownership.

Distribution of Household Wealth Gains Between 2000 and 2026

Between the first quarter of 2000 and the second quarter of 2026, the combined wealth of the next 9 per cent, the households immediately below the wealthiest 1 per cent, increased by $52.5 trillion, compared with $48.6 trillion for the top 1 per cent, according to calculations using the Federal Reserve’s quarterly household wealth data. The next 40 per cent received $39.5 trillion, or 27.5 per cent of the total increase, and the bottom half approximately $2.9 trillion, or 2.0 per cent.

Because the top 1 per cent comprises far fewer households, its average gain was considerably higher. The report estimates approximately $4.3 million per household within the next 9 per cent and approximately $36.1 million within the top 1 per cent. The calculations use the US Census Bureau’s 2025 estimate of 134.8 million US households (https://fred.stlouisfed.org/series/TTLHH), published in its Historical Households Tables, Table HH-1 (https://www.census.gov/data/tables/time-series/demo/families/households.html). These are approximate group averages, rather than measurements of the gains experienced by particular households.

The Top 1 Per Cent Between 2020 and 2026

Between the first quarter of 2020 and the second quarter of 2026, total US household wealth increased by $83.9 trillion. The top 1 per cent received 36.7 per cent of that increase, approximately $30.8 trillion, and the next 9 per cent received 32.9 per cent, approximately $27.6 trillion. Of the latter group’s increase, $16.0 trillion came from corporate shares and $6.1 trillion from real estate, according to the report’s calculations. The Federal Reserve’s quarterly wealth series for the group (https://fred.stlouisfed.org/series/WFRBLN09053) records approximately $40.0 trillion in the first quarter of 2020 and $67.6 trillion in the second quarter of 2026.

The next 9 per cent therefore led over the full 2000 to 2026 period, while the top 1 per cent led between 2020 and 2026. In both periods, the two groups remained ahead of the next 40 per cent and the bottom half. The shorter period accounts for a substantial portion of the growth since 2000. The periods overlap, so the 2020 to 2026 figures should not be added to the 2000 to 2026 totals.

Federal Reserve Data on the Next 9 Per Cent

In the second quarter of 2026, the next 9 per cent held 36.4 per cent of all US household wealth. Its share of corporate shares and mutual fund holdings was 37.2 per cent, compared with 11.4 per cent for the next 40 per cent and 0.6 per cent for the bottom half. It held 43.3 per cent of defined contribution pension entitlements (https://fred.stlouisfed.org/series/WFRBSDCPN09), more than any other wealth percentile group. Its share of liabilities was lower than its share of wealth: 24.4 per cent of outstanding home mortgages and 10.3 per cent of consumer credit. These figures describe the group’s share of national totals, rather than the finances of an individual household.

The group’s proportion of total household wealth has changed only modestly. Federal Reserve records (https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/table/) place it at 38.0 per cent in the third quarter of 1989, 35.9 per cent in the first quarter of 2000, 39.3 per cent in the first quarter of 2020 and 36.4 per cent in the second quarter of 2026, despite substantial dollar increases.

The Report’s Interpretation of Changes in Asset Ownership

The ownership figures form part of the report’s broader examination of monetary expansion, asset prices and the distribution of wealth. Felix Nikolas Prehn examines how central bank asset purchases can affect the value of existing financial assets: when securities are purchased, their previous holders may redirect funds into other assets, putting upward pressure on prices. The report assesses how this may benefit households with substantial financial holdings before the effects are reflected more widely in consumer prices, which makes the next 9 per cent’s concentration of corporate shares and retirement entitlements particularly relevant.

The research also considers other influences on asset values, including corporate earnings, the growth of technology companies and international savings flows, and treats monetary policy as a potential contributing mechanism rather than attributing every gain to central bank purchases.

The Federal Reserve’s estimates combine household survey information with national financial totals and may be revised as additional information becomes available. The reported changes are nominal and not adjusted for inflation, and the percentile groups represent changing populations of households rather than fixed sets of families.

The bottom half of US households received just 2.0 per cent of aggregate wealth gains between 2000 and 2026 and 2.8 per cent between 2020 and 2026. The contrast between these households and those with substantial existing assets forms the central distributional finding of The Hidden Regressive Tax.

About The Prehn Institute

The Prehn Institute is an independent research institution founded by Felix Nikolas Prehn, economist, tech founder and former investment banker. It publishes research on the financial markets and provides instruction in professional market practice. Felix Nikolas Prehn is the author of The Hidden Regressive Tax.

Website: https://prehninstitute.com/

Disclaimer

This press release is for information purposes only and does not constitute investment or financial advice.

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