US household wealth rises in Q2 to record $163.8 trln

US Household Net Worth Climbs to Record on Home Values, Stocks

U.S. household wealth rose to a record $163.8 trillion in Q2.
The increase was driven by a $1.8 trillion rise in real estate values and a $700 billion gain in equity holdings.
Household debt rose at an annualized rate of 3.2%, the fastest pace since Q3 2022.
Cash on hand decreased to $18.44 trillion at the end of June, down from $18.51 trillion at the end of March.
The stock market ended Q2 at near-record levels, with the S&P 500 index delivering a total return of 4.3%.

In the second quarter, U.S. household wealth reached a record high of $163.8 trillion, according to a Federal Reserve report. This increase of $2.76 trillion, or 1.7% from the previous quarter, was largely driven by a significant rise in real estate values, which increased by approximately $1.8 trillion, and a gain of $700 billion in equity holdings. Despite the increase in wealth, household debt rose at an annualized rate of 3.2%, marking the fastest pace since the third quarter of 2022. Additionally, cash on hand decreased slightly to $18.44 trillion, down from $18.51 trillion at the end of March. The stock market also performed well, with the S&P 500 index delivering a total return of 4.3% during the quarter. This financial snapshot comes as the Federal Reserve is expected to reduce borrowing costs for the first time since the pandemic recession, amid cooling inflation and concerns about the labor market.

U.S. household wealth increased to a record $163.8 trillion in the second quarter, primarily due to rising real estate and stock values. Household debt also rose, while cash holdings saw a slight decline.

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US Household Wealth Reaches Record High

9/12/2024

[0]Reuters

[1]Bloomberg.com

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