By Saijel Kishan | Bloomberg
An unprecedented transfer of wealth in the coming decades is likely to disproportionately benefit America’s most affluent families, boosting their fortunes by trillions of dollars, according to a July report from Visa Inc.
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Almost three quarters of those expected to inherit from baby boomers are already in the top 10% by household net worth, the report found.
“This is far from a broad redistribution of wealth,” the report said. “These transfers will be highly uneven, reinforcing pockets of affluence and quietly shaping who benefits most — and how much of this windfall ultimately shows up in spending rather than savings.”
High-income households are less likely to spend their inheritances right away than less affluent ones, which means most of the money will be go toward savings, investments and property purchases, according to the Visa Business and Economic Insights analysis. That shift is expected to create new opportunities for banks, wealth managers and other financial firms, the report said.
The expected “great wealth transfer” — described as the largest in history, with $93 trillion in assets changing hands — may be less dramatic than headline figures suggest, according to Visa’s analysis. After accounting for liabilities, retirement spending, charitable giving, taxes and fees, the report estimates that less than 40% of that wealth, or about $36 trillion, will ultimately be passed on to younger generations. That works out to roughly $515,000 per inheriting household. The analysis excludes the wealthiest 1% of households, whose spending patterns differ significantly from the broader population.
Ultimately, Gen Z and Millennial households are expected to spend about $8 trillion in inherited wealth on transportation, housing, travel and retail, among other categories, Visa said.
Some of that transfer is already underway, with grandparents helping fund home down payments and family vacations, the report said.
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Home purchases drop as mortgage rates march higher
US mortgage rates rose last week to match the highest level since August 2025, sending applications for home purchases to the lowest level since February.
The average contract rate on a 30-year fixed mortgage climbed 7 basis points to 6.65% in the week ending July 10, according to weekly Mortgage Bankers Association data published Wednesday. Meanwhile, the group’s index of mortgage purchase applications fell 7.3%.
The rise in borrowing costs and drop in applications underscores one way inflation is taking a toll on the US housing market: Investors expect the Federal Reserve to raise its benchmark interest rate in the months ahead to ward off price pressures emanating from the Iran war.
Fed Chairman Kevin Warsh, in testimony before Congress Tuesday, singled out the housing market as a weak spot in an otherwise solid economy. He said 30-year fixed-rate mortgages are elevated in part “because of inflation that has been above the Fed’s objectives.”
“I’m a great believer in the American dream, and I know that a mortgage and first-time house is one important step to do that, and we’ll do what we can to support it,” Warsh added later.
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Matthew Boesler at Bloomberg contributed to this report.