US household wealth hit another record in first quarter, Fed data shows
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People walking along New York City's Fifth Avenue in May 2024.
PHOTO: AFP
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NEW YORK - US household wealth rose to a record of more than US$160 trillion (S$215 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 June 7.
Household net worth rose 3.2 per cent, or by US$5.1 trillion, with the appreciation of equity holdings accounting for the lion’s share of the gain at US$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 per cent 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 US$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 per cent, led by a 6.2 per cent increase in the federal government’s obligations, although that snapped a run of three straight quarters of federal debt growth exceeding 10 per cent. Household debt grew 2.9 per cent and business nonfinancial debt climbed by 4 per cent. REUTERS
