U.S. Household Net Worth Climbs to Highest Level on Record
September 21, 2020
Few would have predicted that following the first quarter’s record drop in household net worth that the second quarter would see a record high. The net worth of American households rose by 6.8% in Q2 to a total of $118.96 trillion. That’s $380 billion more than the end of 2019, before the coronavirus pandemic eliminated $7 trillion in the first quarter of the year.
Household net worth is calculated by considering all of a household’s assets, including real estate, vehicles, stocks and bonds, and bank deposits, verusus all of thier liabilities, like thier mortgage and credit card debt.
The surge was fueled by the stock market rally and government stimulus. The household savings rate surged in the second quarter to 26%, up from just 9.6% in the first quarter, as millions of Americans deposited their stimulus checks and enhanced unemployment checks.