The Federal Reserve's triennial Survey of Consumer Finances reveals a significant improvement in U.S. family finances between 2019 and 2022, despite the disruptions caused by the COVID-19 pandemic. The data shows a 37% surge in real median net worth and a 23% rise in mean net worth during this period, nearly doubling the previous record.
The survey results, released on Wednesday, further indicated a growth in real median family income by 3%, while real mean family income rose by 15%. This larger increase among top earners suggests an escalating trend of income inequality.
Homeownership saw a minor increase to 66.1%, contributing to the rise in family net worth. Homes added an average of $323,000 and financial assets like stocks and bonds contributed an average of $39,000 to a family's net worth. The median net housing value rose from $139,100 in 2019 to $201,000 in 2022. However, housing affordability reached historic lows as the median home value surpassed 4.6 times the median family income.
Approximately 42% of families had debt secured by their primary residence, with the median debt slightly decreasing to $155,600 in 2022. Credit card debt remained stable at around 45% of families, but both median and mean balances for such debt fell.
The report also highlighted persistent racial wealth disparities. Black families' net worth increased by 60%, or approximately $17,000, yet the wealth gap with White families continued as their net worth increased by nearly $67,000.
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