Real Estate Drives US Household Wealth To Record Highs
The wealth of US citizens hit a record $88.1 trillion in Q1, as rising home values offset early year market turmoil.
The wealth increase was boosted by a $498B rise in real estate values in the US, while equities in general declined by $160B, according to Fed data.
US households lost $12 trillion immediately following the recession, with total wealth hitting a low of $55 trillion in 2009—the current record amount reflects the extent of the turnaround since that time.
“People are freer to go out and spend now, based on those wealth gains,” Capital Economics chief US economist Paul Ashworth tells the Wall Street Journal.
A big difference in household wealth today compared to before the crisis is the lack of debt accrued, which remains lower than during the 2008 financial turmoil. [WSJ]
