US household wealth hit another record in first quarter, Fed data shows
2:52 pm Friday, June 07th, 2024
(Reuters) – U.S. household wealth rose to a record of more than $160 trillion in the first three months of 2024 thanks to the stock market’s record run and gains in real estate, Federal Reserve data showed on Friday.
Household net worth rose 3.2%, or by $5.1 trillion, with the appreciation of equity holdings accounting for the lion’s share of the gain at $3.8 trillion, the Fed said in its quarterly snapshot of the nation’s private and public sector finances.
The benchmark Standard & Poor’s 500 Index gained 10.6% in the first quarter on a total return basis, including reinvested dividends. The index hit another record high earlier this week.
Real estate value growth added another $0.9 trillion, and upticks in other assets including cash and money market funds accounted for the rest of the increase. Household net worth has nearly doubled in the past decade.
Total nonfinancial debt rose by 4.5%, led by a 6.2% increase in the federal government’s obligations, although that snapped a run of three straight quarters of federal debt growth exceeding 10%. Household debt grew 2.9% and business nonfinancial debt climbed by 4%.
(Reporting by Dan Burns; Editing by Leslie Adler)
