U.S. household wealth has grown by $20 trillion since the fourth quarter of 2019, according to an analysis by ING's chief international economist, James Knightley. From the equity market trough in March last year, wealth has increased $26 trillion thanks to massive support from both the federal government and the Federal Reserve.
Total assets at the end of 2019 stood at $134.3 trillion, then plummeted to $127.8 trillion at the end of March 2020. Total assets subsequently rebounded on the back of stimulus packages and relief payments: Despite the lockdowns brought on by the pandemic, the U.S. household balance sheet improved to $154.2 trillion in the first quarter of 2021, Knightley wrote, citing Federal Reserve Flow of Funds data.
Nonfinancial assets—mainly real estate—now total $44.6 trillion, while financial assets total $109.6 trillion. Here are the largest categories:
- Pension entitlements: $29.9 trillion
- Corporate equities: $28.2 trillion
- Small-business equity: $13.1 trillion
- Mutual funds: $11.6 trillion
- Time and savings deposits: $11.2 trillion
Liabilities are "just" $17.2 trillion, Knightley wrote, and are primarily mortgage and consumer loans, which leaves household net worth at $136.9 trillion. This is equivalent to 620 percent of U.S. GDP.
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Michael S. Fischer
Michael S. Fischer is a longtime contributing writer for ThinkAdvisor. He previously reported on trade and intellectual property topics for the Economist Intelligence Unit and covered the hedge fund industry for MARHedge and Reuters News Service.
