Household net worth in the US jumped to record high of $141.7T in Q2 2021.
US Household Net Worth Jumped +4.3% in Q2
A new report from the Federal Reserve indicated that household net worth in the US increased by $5.8T, or +4.3%, to $141.7T during Q2 2021.
This record-setting second quarter high was made possible by a +$3.5T gain in the value of equities and a +$1.2T improvement in real estate held by US households.
An ebullient stock market soared to record highs during Q2 2021. Coupling stock market highs with low borrowing costs have enabled more Americans to purchase houses. According to wealthmanagement.com, “These figures highlight how the massive support provided by the government and the Fed has bolstered Americans’ wealth.”
Federal stimulus efforts enabled net private savings to grow at an annualized pace of nearly $2.9T in Q2 after surging $4.8T in Q1 2021.
Equity shares as a percentage of total household assets increased to nearly 29.5%, up from 25.6% in 2019, during Q2 2021.
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Not All Households Across the Board Saw These Gains
According to a recent poll by Gallop, only 55% of Americans are currently invested in the stock market. Even though this 55% is a sharp rise from the 32% of Americans who owned stock in 1989, just more than half of all Americans were able to take advantage of high stock market gains while just less than half were not.
The Federal Reserve’s Survey of Consumer Finances in 2019 indicated that stock ownership is concentrated in the hands of the white and wealthy. This concentration hasn’t changed much in two years.
The median value of stock held by households ranges between $40,000 and $45,000.
Debt Increases
Business debt outstanding increased by $63.2 B q/q, +1.4% on an annualized basis, from April to June to a total of almost $18T.
The Federal debt outstanding increased by $578.8B, +9.6% on an annualized basis to $24.7T.
Consumer credit outstanding not including mortgage debt increased by $91.2B in Q2 2021.
Thanks to Bloomberg.
