The average American household achieved millionaire status last year

hollydolly

hollydolly

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  • The mean net worth of an American household hit $1,063,700 in 2022
  • Rising house prices helped increase household net worth, according to the Fed
  • Retirement accounts and vehicles also went up in value from 2019 to 2022
The average American household achieved millionaire status last year after the pandemic bolstered their savings, retirement pots and the price of their homes, new data has revealed.

According to the Federal Reserve's consumer finance survey, the mean net worth of an American household - adjusted for inflation - hit $1,063,700 in 2022.

This is up 23 percent from 2019, when the mean American household had a net worth of $868,000.

Even when looking at the median - which represents the midpoint and is less likely to be skewed by extreme numbers at either end of the scale - the average US net worth increased by 37 percent over the course of the pandemic.

According to the Fed, the median figure rose from $141,100 to $192,900 between 2019 and 2022.

The study highlighted how rising house prices supported an increase in both median and mean inflation-adjusted net worth.

The conditional mean value of families' total assets rose by 20 percent to $1,194,300.

'These changes were driven by increases in the prices of both financial and nonfinancial asset holdings, notably equities and real estate,' the Fed report read.

Between 2019 and 2022 the mean value of a primary residence rose by 18 percent from $398,900 to $471,000 - outpacing inflation.

The mean value of vehicles also rose by 30 percent in the three years - from $30,800 to $40,100 - according to the report.

The average value of retirement accounts also increased during the pandemic.

The Fed found that their mean value increased by 13 percent from $295,800 to $334,000.

Average American household achieved millionaire status last year


Agree or Disagree folks ?
 

It varies wildly by region too. Some are well heeled though they enjoy the same overall economy as struggling regions where incomes are far lower.
 
dilettante said:
It varies wildly by region too. Some are well heeled though they enjoy the same overall economy as struggling regions where incomes are far lower.
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As in the UK, financial wealth based on certain criteria can look good. However, on other criteria, can be bad. For example, the number of bankruptcies are increasing.
 
debodun said:
You wouldn't know it by the people that patronize my garage sales. You'd think most people were suffering abject poverty.
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When I go to a garage sale I usually pay the listed price unless I honestly think it’s overpriced for the item and then I make an offer. When I have a garage sale I will accept a reasonable offer. However, some people aren’t happy unless they are paying less. On big items I always ask more than I really want for this reason.
 
For years Californians sold their small ranch houses for a fortune and then retired to Reno and bought a much nicer house with money left over. Now that our prices are higher than Sacramento it doesn’t always work unless they live in a more expensive place. Most people have to work so can’t just sell their home in an expensive region and move to a cheaper state.
 
The thing that bother me the most is property tax on a persons primary home. We have all worked so hard to pay off our home. Yes, I will get a discounted rate at 65 but will it be enough to keep me in my home for the coming years. Yes, I should have taxes to contribute to my community but it should not be so high that I risk losing my home.

I think that taxes for the elderly should be income based not property value. The property value will continue to increase until we are forced out of our homes. I think this is a large part of why so many older people are ending up in substandard living or even homeless. We worked hard all of out lives to have a home and then we get forced out by inflation of taxes.
 
Blessed, yes many retirees are forced out of their homes by high property taxes. I know that New Jersey has some of the highest in the country. Fortunately taxes in Nevada are extremely low because the casinos pay so much in taxes.

We also have a strange system where the age of the home is taken into consideration. So my condo is worth 230k and my taxes are 35/month because my condo is 45 years old.
 
In the OP's post. Car & home were cited as assets to be counted for mean net worth. Debt to have those assets IMO should offset that.


How is that debt split between mortgages, auto loans, credit cards, and other types of loans?

American households carry a total of $17.29 trillion in debt as of the third quarter of 2023, and the average household debt is $103,358 as of the second quarter of 2023.


A column chart showing household debt by type.
 
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Knight said:
In the OP's post. Car & home were cited as assets to be counted for mean net worth. Debt to have those assets IMO should offset that.


How is that debt split between mortgages, auto loans, credit cards, and other types of loans?

American households carry a total of $17.29 trillion in debt as of the third quarter of 2023, and the average household debt is $103,358 as of the second quarter of 2023.


A column chart showing household debt by type.
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That's what net worth indicates. Current value - debt = net worth
 
againstthegrain said:
I think part of the point of the article was that things are worth more in 2023 than in 2019 so cars actually appreciated in value during that period.
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they certainly have here. In some case you can sell a used car for more than it cost when it was new..
 

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