Net worth of US households reaches record USD168.8 trillion in Q3

(MENAFN) The net worth of US households reached a record USD168.8 trillion in the third quarter of 2024, according to the Federal Reserve. This increase was driven by a surge in the stock market, which saw the value of Americans' stock assets rise by USD2.8 trillion. Household wealth grew by 2.9 percent from the previous quarter and 11.4 percent compared to the same period in 2023, highlighting a significant rise in overall financial assets for US families.

In comparison, US household net worth was USD161 trillion in the first quarter of this year and USD163.8 trillion in the second quarter. Despite the strong performance in the stock market, the value of Americans' real estate holdings fell by USD200 billion in the third quarter, reflecting some instability in property values. This decline in real estate values was offset by gains in other asset classes, particularly stocks.

On the liabilities side, American household debt rose by 3 percent in the third quarter of 2024. Consumer loans increased by 2.5 percent, while mortgage debt saw a larger increase of 3.1 percent. This rise in debt, coupled with the increase in wealth, points to a complex financial landscape where Americans are benefiting from higher asset values but also taking on more debt.

Overall, the third-quarter data demonstrates the resilience of US household wealth, with significant gains in financial assets, though it also underscores the growing level of household debt. These trends are indicative of the broader economic environment, where rising stock market values are balancing against challenges in real estate and increasing borrowing costs.

MENAFN15122024000045015839ID1108994640