US household net worth dropped in Q1 of 2022, the first dip in two years,
What’s that mean?
Overall, household net worth decreased by $540B to $149.3T.
Household net worth is determined by subtracting liabilities from assets.
- Liabilities include debt, which grew 8.3%, slightly more than last quarter.
- Assets include the things you own, like real estate.
Real estate values jumped $1.6T this quarter, but that wasn’t enough to fully offset a $3T drop in the value of corporate equities — AKA stocks — held by households.
The last decline came in Q1 2020…
… at the beginning of the pandemic. But as many homes received stimulus payments, net worth rose to a record $149.8T in Q4 of 2021.
Now, even with stocks down, bank accounts remain $39T above pre-pandemic levels,
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