Federal Reserve Says Household Wealth Down 23% in 2 Years

Not that you need the Federal Reserve to tell you you’re poorer now than you were before the financial crisis, but the Federal Reserve today announced that the average American household’s net worth plummeted 23% between 2007 and 2009.

The Fed reported that the median net worth of American households went from $125,000 to a meager $96,000 in 2009. It doesn’t take an economist to figure out that this has a large impact on the American economy, and on American families.
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The largest decrease in net worth occurred to those households with equity investments, who saw their equity investments drop from an average of $18,500 down to $12,000, as drop of 33%. Meanwhile, the value of real estate holdings dropped an average $18,700.

To make matters worse for all households, while the value of their equity and real estate holdings dropped sharply, their debt levels increased and their net income dropped. Average household debt went from just over $70,000 to $75,600. Average net income dropped slightly from $50,100 to $49,800.

The Fed report said that the US economic and financial recovery is actually being hampered by “counterproductive” household activity. That’s right, American households are now saving TOO much. Saving rates are up across all income levels, causing less money to be pumped into the economy. This editor will continue to act “counterproductive” for the long term, by continuing to save at a high rate.

Calculators – Net Worth Calculator

HOW DO YOU COMPARE? Breakdown of households by net worth: Median household net worth: $100894. Source: Claritas, December 2003 data 

 

Wealth in the United States – Wikipedia, the free encyclopedia

Household net worth fell from 2007 to 2009 by a total of $17.5 trillion or 25.5% . This was the equivalent loss of one year of GDP. By the fourth quarter of 

Average Net Worth of an American Family

Jun 2, 2009  Do you know what the average net worth is in the United States? Every three years the Federal Reserve Board does a survey of consumer 

104 B.100 Balance Sheet of Households and Nonprofit Organizations (1)

Mar 10, 2011  Household net worth as percentage of ….. R.100 Change in Net Worth of Households and Nonprofit Organizations 

U.S. Families Slice Debt to Lowest In 6 Years – WSJ.com

Mar 11, 2011  With the help of rising stock prices, the decrease in debts put average household net worth at $505000 at the end of 2010, up 5.1% from 2009 

Household Net Worth

Sep 18, 2010  According to the Fed, household net worth is now off $12.3 Trillion from the peak in 2007, but up $4.7 trillion from the trough in Q1 2009.