The wealth gap between millennials is widening, creating a new class struggle.

• A study reveals that the wealth gap between rich millennials and their age group is the widest, leading to a new wave of class conflict and animosity.
• Despite the fact that the average millennial has less wealth at age 35 than previous generations, the wealthiest 10% of millennials have 20% more wealth than the wealthiest baby boomers at the same age.
• The growing wealth of millennial heirs is generating a profitable new market for wealth management firms, luxury companies, travel agencies, and real estate brokers.

The original article was published in CNBC's Inside Wealth newsletter with Robert Frank, providing a weekly guide for high-net-worth investors and consumers. To receive future editions, subscribe and have them delivered directly to your email inbox.

A recent study shows that the wealth gap between rich millennials and their age group is the widest of any generation, resulting in a new wave of class conflict and animosity.

Despite the challenges faced by the majority of millennials, including student debt, low-paying jobs, and high housing costs, the wealthiest millennials are outpacing previous generations. A study found that the average millennial has 30% less wealth at age 35 than baby boomers did at the same age. However, the top 10% of millennials have 20% more wealth than the top baby boomers at the same age.

"The study's authors, Rob Gruijters, Zachary Van Winkle and Anette Eva Fasang, wrote that Millennials are so diverse that it is not useful to discuss the "average" Millennial experience. While some Millennials, such as Mark Zuckerberg and Sam Altman, are thriving, others are facing challenges."

Millennials, who are between the ages of 28 and 43 today, have experienced numerous financial challenges. Despite growing up during the financial crisis, they have lower rates of homeownership, higher levels of debt that exceed their assets, and are more likely to have low-paying and unstable jobs. Additionally, millennials are less likely to form dual-income families.

The top 10% of millennials have gained more benefits from high-status jobs, while the returns to low-status jobs have remained stagnant or decreased, according to the authors.

According to the report, Baby Boomers who followed a similar life trajectory as millennials, who "went to college, found graduate level jobs, and started families relatively late," ended up with "higher levels of wealth than the millennials."

The great wealth transfer

Baby boomers are expected to pass down between $70 trillion and $90 trillion in wealth over the next 20 years, with much of that going to their millennial children. High-net-worth individuals worth $5 million or more will account for nearly half of that total, according to Cerulli Associates.

Some wealth management firms assert that some of that wealth is already being passed down to the next generation.

"UBS' Private Wealth Management head John Mathews announced that the long-awaited great wealth transfer is now underway. According to Mathews, the average age of the world's billionaires is currently almost 69, indicating that the wealth handover will accelerate."

The transfer of wealth in the coming years may exacerbate tensions between millennial classes, as "nepo babies" showcasing their wealth on social media could fuel an intra-generational class war and prompt nonwealthy millennials to overspend or present a lavish lifestyle to keep up.

Affluent millennials, defined as having assets of $250,000 to over $1 million of investible assets, are more likely to buy items they cannot afford to impress others, with 29% admitting to this behavior, compared to 41% of affluent millennials, 28% of Gen Xers, and 6% of baby boomers. Additionally, a survey by Wells Fargo found that 41% of affluent millennials fund their lifestyles with credit cards or loans, while 28% of Gen Xers and 6% of baby boomers do the same.

The study by Fidelity Investments reveals that 88% of American millionaires are self-made.

Inherited wealth is becoming more common among newly minted billionaires, according to a study by UBS. For the first time in at least nine years, heirs who inherited their fortunes accumulated more wealth than self-made billionaires. Additionally, all the billionaires under the age of 30 on the latest Forbes billionaires list inherited their wealth, marking the first time in 15 years.

'Extreme' wealth

The growing wealth of millennial heirs is generating a profitable new market for wealth management firms, luxury companies, travel agencies, and real estate brokers.

Clayton Orrigo, a top luxury real estate broker in Manhattan, has built a successful business catering to moneyed millennials. As the founder of the Hudson Advisory Team at Compass, he has sold over $4 billion in real estate and regularly brokers deals worth over $10 million. Orrigo states that the majority of his recent business comes from buyers in their 20s and 30s who have inherited wealth.

"I recently sold a $16 million apartment to a young buyer in their mid-20s, and the transaction was facilitated through their family trust," he stated. "The wealth of these young individuals is astonishing."

Orrigo specializes in inherited wealth, focusing on building strong relationships with family offices, trusts, and young money elite at New York membership clubs such as Casa Cipriani.

A wealthy family seeks a rental for their child, and later, they desire a $5 million or $10 million two-bedroom condo in a new, secure downtown building.

Orrigo stated that his gig is operating in a highly clandestine manner with the world's wealthiest families.

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