As older generations (particularly Baby Boomers and the Silent Generation) retire or pass away, their assets are transferred to heirs, who are largely family members. According to a recent report from Cerulli, approximately $124 trillion will move from older generations to Gen Xers and Millennials by 2048.
This means the United States will experience a historic intergenerational wealth transfer over the next two decades. Nicknamed the Great Wealth Transfer, or the Silver Tsunami, this phenomenon doesn’t necessarily mean heirs will finally be able to get rid of their student debt or fund a down payment for a house.
Currently, most older people’s wealth is tied to real estate, with Baby Boomers owning the most property in the U.S. (41% in 2025), followed by Gen Xers (30%). While it is expected that $105 trillion will flow to heirs, more than 50% of the total transfer volume ($62 trillion) is expected to come from high- and ultra-high-net-worth households, which together account for only 2% of all households.
Underwood Law explains what this means for the economy in general and how this intergenerational wealth transfer impacts people’s lives.
The Silver Tsunami is Actually a Tide
Economists and headlines have long warned of a sudden crash in home prices caused by millions of Boomers dying or selling their homes simultaneously, flooding the market with inventory.
The data, however, suggests a more complex reality.
First, the intergenerational wealth transfer will occur gradually, acting more like a rising tide than a crashing wave. Over the next decade, most property and wealth owned by Boomers and older generations will move down to Gen X family members, who may not be interested in selling.
For those Boomer homes that will “flood” the market, they won’t crash prices. Given that we’re going through a period of historic inventory shortages, they might just be enough to meet the desperate pent-up demand from Millennials and Gen Zers.
Additionally, people live longer nowadays. Boomers are between 61 and 79 years old, and with the average life expectancy in the U.S. being 78.4, there’s still a long way to go before all property owned by Boomers switches hands.
Where is This Intergenerational Wealth Going?
Big numbers, like $124 trillion, are impressive, but it’s important to understand that not all of this wealth will spill into the economy or be passed down to heirs.
Here are a few common scenarios.
The Asset Doesn’t Go to Heirs
With the median cost of a private room in a nursing home exceeding $100,000 annually, many Boomers may have to liquidate real estate assets to fund their own end-of-life care.
This way, wealth transfers from families to the healthcare/insurance sectors, effectively reducing the net inheritance for the next generation.
Multiple Heirs Who Can’t Agree With Each Other
Consider the best-case scenario: The wealth, in the form of real estate, is passed down to the generation that needs it the most (Millennials). Unless only one person is inheriting, the situation can quickly turn into a complex dispute over how to divest from the property.
According to law firms that specialize in partition trials, inherited property often ends up with multiple owners. Things can get complicated quickly when this happens. Usually, there’s a disagreement between those who want to sell and those who want to keep the property or turn it into an investment.
It can take years for all owners to come to an agreement, during which the property may be left unattended and unmaintained (losing value).
To avoid such a scenario, owners often retain legal counsel and involve the courts in the partition process. It may not be the most family-friendly method, but it will help avoid getting locked into property ownership.
The Risk of Division
Economists are seeing a bifurcation of the younger economy: "Heirs" versus "Non-Heirs."
Millennials who expect an inheritance are already spending differently, taking on more risk or buying larger homes with the anticipation of a future windfall (essentially prespending the inheritance).
Those without property-owning parents face a double penalty: They pay rent to the older generation today and lack the familial capital injection to buy in tomorrow. This will likely widen the wealth gap significantly over the next 20 years.
It's Not the Boost Everyone Hopes For
Reliance on real estate inheritance is risky. In an ideal scenario, people can sell or turn the property into an investment, but only if they’re the sole inheritor. Even so, the market is constantly changing, and it’s challenging to predict whether a grandparent’s home will yield the expected financial windfall.