Even as many households feel squeezed by higher grocery, rent, and utility bills—a reality detailed in America’s Cost-of-Living Crunch: How to Stay Afloat in 2025—more low- and moderate-income Americans are entering the stock market.
Since 2020, the number of low- and moderate-income investors has increased 2.7 times (167%), according to new research from the BlackRock Foundation and Commonwealth. The findings suggest broader participation in the capital markets, even among households facing severe affordability challenges.
The research draws on JPMorgan Chase Institute data tracking billions of de-identified transactions from roughly 10 million active checking account users. Analysts examined money transferred into investment accounts for households with median net incomes of $29,000 to $51,000 in 2024.
“We have real data that there has been a dramatic increase in who is participating in capital markets over the last several years,” said Commonwealth CEO Timothy Flacke. A separate January 2025 survey found that 54% of low- and moderate-income Americans were investing in retail markets, with more than half starting within the past five years.
Several forces have made investing more accessible since 2020:
However, inflation has been a major headwind. Consumer prices peaked at 9.1% in June 2022 and, while moderating to 2.4% over the past 12 months as of January, remain elevated. Lower-income households tend to experience higher effective inflation rates, which makes budgeting ruthlessly for core essentials even more critical.
One key factor separates those who invest from those who don’t: liquidity. Low- and moderate-income households are more likely to invest when they have at least two weeks’ worth of expenses in liquid savings—typically between $1,500 and $2,000. This perfectly aligns with the strategies discussed in Understanding Your Household Economics, where building a foundational cash buffer empowers long-term financial planning.
Short-term income boosts also play a role. Tax refunds, bonuses, and seasonal earnings increases often coincide with higher investment activity. Notably, these investors allocated about 30% more of their income to investing between 2020 and 2024 compared with the 2015–2019 period.
Strong market gains in recent years have boosted household wealth, but not everyone has participated. According to Gallup, 62% of Americans owned stocks in 2025. Stock ownership is highest among households earning $100,000 or more, and lowest among households earning under $50,000.
Meanwhile, a January 2025 survey from the Federal Reserve Bank of Philadelphia found 57% of adults do not own stocks. The most common reasons cited were a lack of available funds and limited knowledge about investing. This knowledge gap and financial burnout is driving a “live now, worry later” mindset, a trend we explored deeply in “What’s the Point?”: Why Gen Z Is Ditching Financial Planning.
Without exposure to equities, households miss out on compound growth—where returns build on both the original investment and accumulated gains over time. Missing this growth is exactly Why Too Much Cash Hurts Your Long-Term Wealth.
President Donald Trump recently announced plans for a new retirement program that would include up to a $1,000 annual government match for workers without access to employer-sponsored retirement plans.
Financial institutions may also play a role in sustaining investing momentum by helping new investors build emergency savings first. “If the industry thinks about supporting this new investor group, how do you make that experience as successful as possible for them over the long haul?” said Claire Chamberlain, president of the BlackRock Foundation.
Despite inflation and rising living costs, investing is no longer limited to higher-income households. Digital platforms, market gains, and temporary income boosts have helped bring more low- and moderate-income Americans into the capital markets.
But access alone isn’t enough. As highlighted in 10 Passive Income Ideas That Actually Work, building lasting wealth is about momentum. Emergency savings, financial education, and disciplined long-term investing will determine whether this new wave of everyday investors can turn market participation into real, generational wealth.
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