From Dow Jones:
The net worth of U.S. households set a record of $89.1 trillion in the second quarter, driven by a buoyant stock market and a steady resurgence of home prices.
Increases of nearly half a trillion dollars each in the value of U.S. stocks and the aggregate value of household real estate contributed to the record, according to the Federal Reserve’s quarterly report measuring the aggregate wealth of U.S. households and nonprofit organizations.
Household net worth is the sum of all assets, such as homes, stocks, bonds, vehicles and cash, minus all debts like mortgages, credit cards, student loans and auto loans.
The data underscores the U.S. economy’s round-trip over the past decade. Home prices peaked in 2006 and stocks peaked in 2007. Both crashed sharply as the U.S. plunged into the longest recession since the Great Depression, beginning in late 2007.
But prices have gradually rebounded in recent years. Stocks began to climb sharply in 2009 and by 2013 had reached a new peak, based on the Dow Jones Industrial Average. The recovery in home prices started later and took longer, but now, in aggregate, American housing wealth is gradually approaching its precrisis peak.
“The winners in recent years aren’t the same people who lost out in the crash,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics, before the report.