The Federal Reserve's latest Survey of Consumer Finances has revealed significant growth in the net worth of U.S. families from 2019 to 2022.[0] The report shows that the real median net worth of U.S. families surged by 37%, while the mean net worth increased by 23%. This expansion of net worth is nearly double the previous record set by the Federal Reserve.[1] The government has been measuring this data every three years since 1989.[1]
The survey, which comprehensively measures income, net worth, credit use, debt, and other financial outcomes for American families, found that the real median net worth increased by 37% in 2022, adjusted for inflation. This is a significant increase from the pre-pandemic levels in 2019. The median household net worth at the end of 2022 was nearly $193,000.[2]
The average family's net worth also saw a substantial jump of 37% between 2019 and 2022. This marks the largest three-year increase since the Federal Reserve began conducting the survey over three decades ago.[3] The expansion in net worth is attributed to various factors, including the value of homes.
During this period, homeownership gradually increased to include 66.1% of families.[4] The median net housing value saw a significant increase from $139,100 in 2019 to $201,000 in 2022.[1] This increase in housing value contributed to the rise in overall net worth for many families. However, it also led to historic lows in housing affordability, as the median home value surpassed 4.6 times the median family income.[0]
Despite the overall growth in net worth, the report highlighted persistent racial disparities.[0] Black households' median wealth in 2022 was around $45,000, compared to $285,000 for the median White household.[5] Asian American households had the highest median wealth, with approximately $536,000 in assets.[5]
While gains in net worth were observed across nearly every demographic, Black families experienced the largest increase by percentage, with a 60% bump from 2019.[0] However, their net worth levels remained the lowest among all other racial or ethnic groups, and they also saw their incomes falter.
The report underscores the financial foundation behind the continued resilience and growth of the U.S. economy.[6] Despite concerns of a recession, the survey results demonstrate the positive impact of increased net worth on economic stability and growth.
However, the report also highlights income inequality, with average incomes rising by 15% among the wealthiest one-tenth of households compared to a 3% median growth rate.[2] This disparity emphasizes the need for addressing income inequality and ensuring equitable growth for all households.[0]
Overall, the Federal Reserve's survey provides valuable insights into the financial health of American families. The significant increase in net worth for many households demonstrates the positive impact of economic growth and highlights areas for improvement in addressing income and wealth disparities.
0. “U.S. family net worth surges despite pandemic, income inequality grows By Investing.com” Investing.com, 18 Oct. 2023, https://www.investing.com/news/economy/us-family-net-worth-surges-despite-pandemic-income-inequality-grows-93CH-3202310
1. “Americans had sizable gains in net worth during COVID pandemic” TMJ4 News, 18 Oct. 2023, https://www.tmj4.com/americans-had-sizable-gains-in-net-worth-during-covid-pandemic
2. “Households Might Be Wealthier. Just Don't Tell Winnebago and the Rest of the RV Stocks” Barchart, 18 Oct. 2023, https://www.barchart.com/story/news/21225192/households-might-be-wealthier-just-dont-tell-winnebago-and-the-rest-of-the-rv-stocks
3. “Why the average American family's net worth increased 37% during the pandemic” NPR, 18 Oct. 2023, https://www.npr.org/2023/10/18/1206830922/family-wealth-income-inequality-finances-fed-survey
4. “Americans' net worth surged by a record 37% from 2019-2022” WICZ, 18 Oct. 2023, https://www.wicz.com/story/49856652/americans-net-worth-surged-by-a-record-37-from-2019-2022
5. “Some Americans saw big gains in wealth during the pandemic. Here's why.” CBS News, 18 Oct. 2023, https://www.cbsnews.com/news/american-income-wealth-surged-pandemic-federal-reserve/
6. “Americans' net worth grew at historic pace from 2019 to 2022” AOL, 18 Oct. 2023, https://www.aol.com/americans-net-worth-grew-historic-211048547.html
