Wealth transfer and the future of the U.S. real estate market

The global financial landscape is on the verge of an unprecedented transformation. The recent 2025 Global Wealth Report from the Union Bank of Switzerland (UBS) points to the largest wealth transfer in history: a staggering $83 trillion will pass from one generation to the next over the next two and a half decades.

This massive phenomenon, driven primarily by the United States and China, is not just a statistical event; it is a catalyst that will reshape the dynamics of various markets, with the American real estate sector emerging as a fertile ground for innovative investment strategies.

The United States and China stand out as the epicenters of this capital movement. The report reveals that these two countries together hold more than half of global household wealth (35% and 20%, respectively) and will be the primary drivers of global wealth growth. Simultaneously, emerging markets are showing remarkable momentum: Turkey, the United Arab Emirates, and India are recording wealth growth rates that outpace developed markets, signaling a gradual redistribution of global economic power.

In 2024, the number of American millionaires grew at a rate of nearly a thousand per day, and it is projected that more than 5 million new millionaires will emerge globally by 2029, with a significant portion in the U.S. This concentration and continuous growth of wealth in the U.S. create a robust environment for investment in tangible assets.

The report's generational analysis offers important insights into asset allocation. While Baby Boomers still hold the largest share of net worth in the U.S. (over $83 trillion), the Millennial generation (born from 1981 onwards) shows a notable inclination toward the real estate market. With the highest proportion of assets invested in real estate (net of mortgages) and private businesses, Millennials signal a preference for assets that combine appreciation with entrepreneurial potential. This trend suggests a structural and lasting demand for real estate as this generation matures and consolidates its wealth.

A crucial aspect of this wealth transfer concerns women, who will be significant beneficiaries of this capital movement. However, the report reveals concerning challenges in this transition: 80% of women who have already inherited from their parents faced difficulties in managing that wealth, and 74% of women expecting an inheritance acknowledge they are unprepared. This scenario points to a strategic opportunity in providing specialized consulting and wealth management solutions tailored to female beneficiaries.

One of the most intriguing findings of the study is the rise of "Everyday Millionaires" (EMILLIs) – individuals with assets between $1 million and $5 million. This category, often underestimated, has quadrupled since 2000 and is expected to continue growing. The report emphasizes that real estate appreciation is the most significant factor in the wealth growth of these EMILLIs. This establishes a direct connection between the growth of the millionaire base and the performance of the real estate sector, indicating that real estate is not just a component of wealth, but a fundamental engine for its expansion.

For asset managers, these trends signal strategic opportunities in the U.S. real estate market. Demand for property, driven by both the intergenerational transfer of wealth and the rise of EMILLIs, is expected to remain strong.

This includes not only the residential sector but also segments that cater to the needs of private businesses and the lifestyle of a younger, entrepreneurial population. The resilience and appreciation potential of real estate, especially in a context of moderate inflation and currency stability, position it as an essential pillar for wealth portfolio diversification and growth.

The massive transfer of wealth currently taking shape is not just a historical milestone, but an invitation to re-evaluate investment strategies. The U.S. real estate market, with its robustness and the clear preferences of new generations and millionaire segments, offers a promising outlook.

In line with this dynamic, the increasing complexity of wealth management—particularly for women who inherit—indicates that specialized consulting and financial education are emerging as essential complementary services.

Anticipating these changes is fundamental to transforming this wave of wealth into solid, personalized investment solutions, adapting assets to the demands of an ever-evolving future. In this scenario, investors will remain increasingly attentive to "off-the-radar" opportunities, and it is up to asset managers to uncover niches that, while less visible, offer the stability of long-term contracts and predictable returns, allowing for strategic and efficient capital allocation.

Disclaimer: This material is for informational purposes only and does not constitute an offer, solicitation to buy, or investment recommendation. Past performance is not a guarantee of future results.

inVista Real Estate Insights is a biweekly series from inVista Real Estate that provides strategic insights and reflections on the future of the real estate sector through in-depth analysis and global market intelligence. Led by managers with 25 years of experience and a proven track record in over 23 countries, our newsletter is dedicated to investors seeking security and profitability, helping to build the future of the real estate market, brick by brick.