As Americans collect and save government aid, household wealth has risen during the pandemic
American family Wealth It swelled at a record pace during the pandemic with government distribution Unprecedented aidAmericans hunkered down amid widespread lockdowns, and the value of stocks and homes rose, according to a Federal Reserve survey.
From 2019 to 2022, the median net worth of American households rose 37% to $192,900, after adjusting for inflation – the largest rise in the history of the Federal Reserve’s survey of consumer finances, which is conducted every three years.
Meanwhile, median income grew by a relatively modest 3%, and debt was fairly stable, the Fed said in the report.
During the pandemic, many households received a financial windfall from the government in an attempt to help households amid widespread business closures and layoffs of 22 million workers. This included three rounds of stimulus checks, boosting unemployment benefits, and pausing student loan payments.
From 2019 to 2022, the share of households owning stocks rose from 15% to 21%, the largest ever. Average stock holdings fell to $15,000 from $29,000, but that’s because new stockholders were holding smaller portfolios than old shareholders.
What is the current homeownership rate in the United States?
The share of households that own homes rose to 66.1% from 64.9%, and the median home value increased 24% to $323,200. During COVID-19, millions of Americans have left cities and bought homes in suburbs or rural areas, often purchasing larger homes to accommodate the increased time spent at home and their remote work settings.
Large wealth gains during the coronavirus have likely been pared since last year, a trend not captured in the survey. Stock prices fell as the Federal Reserve raised interest rates sharply to combat this Economic inflation Home values have fallen in many areas amid rising mortgage rates.
Is the wealth gap widening in the United States?
However, during the pandemic, the gains have been significant and widespread, lifting all racial, income, age, educational and other groups. Families who did not complete high school had the largest average gains in net worth at 60%. The net worth of black families also rose by 60%, the largest among racial groups.
The bottom quartile of families in terms of wealth saw the biggest jump, with their median net worth rising from $400 to $3,500. The pace of increase was progressively smaller for the wealthiest households, with the top ten recording a 26% rise to $3.8 million. However, this still represents the largest increase in dollar terms.
Among income groups, wealth gains were largest (69%) for those in the top 80% to 90% of income earners and smallest (24%) for those in the bottom quintile.
This article originally appeared on USA TODAY: The Federal Reserve says US household wealth has risen at a record pace during the pandemic
