Sunday, December 15, 2013

Household Wealth at Record High




A rising stock market and increases in home prices are giving a big boost to household wealth, helping Americans to regain nearly all the wealth they had lost during the recession, the Federal Reserve reports. 

Household wealth nationwide increased 2.6 percent from July through September to reach a record-breaking $77.3 trillion. Since bottoming out in 2008, household wealth has been steadily rising.

Household wealth reflects the value of homes, stocks, bank accounts, and other assets, minus mortgages and other debts, according to The Associated Press.

Rising stock prices alone helped Americans’ net worth grow by $917 billion from July through September. What’s more, rising home values added $428 billion.

With the stock market and home prices still rising, many economists believe that this could roll into stronger economic growth for next year, too.

Source: “U.S. household wealth reaches record high,” The Associated Press (Dec. 9, 2013) and “Americans Continue to Regain Lost Wealth,” The Wall Street Journal (Dec. 9, 2013)

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