Household Asset Valuations Increase To Record Levels – Consumer Wealth (chart)

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The value of household assets in the United States increased in 2024 to an all time high. The Federal Reserve tracks data that it gathers on assets held by households across the country.

Economists believe that as household assets rise in value, so does the propensity for consumers to spend. The so called wealth effect encourages spending and instills confidence in consumers, as expenditures increase with underlying asset values rising.

Increasing real estate values and elevated stock prices have contributed substantial wealth to U.S. households over the past few years. According to data from the National Association of Realtors, home values across the nation are up 49% from five years earlier. The S&P 500 Index has risen over 33% over the past 3 years, adding considerable wealth to households.

Largely appreciated assets are also being leveraged as homeowners borrow against the equity in their homes and their stock portfolio accounts.

Sources: Federal Reserve, NAR

Print Version: Household-Valuations-March-2025

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