(AmericanProsperity.com) – According to a Federal Reserve’s consumer finance survey published on October 24, the average American household was worth $1 million in 2022. The Fed said its data suggested the change occurred as a result of the pandemic bolstering savings, raising home prices, and affecting retirement pots.
The survey explained described how the mean net worth of a single American household reached $1,063,700 last year. The number represents a 23 percent increase from 2019 when the net worth of an American household was $868.00. Economic analysts said on social media that the data reflects an increase in 37% of the average net worth of American citizens by 37% since the pandemic.
As reported by the Fed, the middle figure grew from $141,100 to $192,900 from the year 2019 to 2022. The data showed how the rise in house prices played a crucial role in increasing both mean and median inflation-adjusted net worth. It also showed that the conditional mean values of the total assets of American families were $1,94,300, which represents a 20 percent increase.
In the report, the Fed explained that these changes were mainly caused by price increases in nonfinancial and financial asset holdings in the United States. It added that between the years 2019 and 2022, a primary residence’s mean value grew by 18 percent, outpacing the country’s inflation.
The Fed also revealed in the report that vehicles’ mean value also moved from $30,800 to $40,100, representing a 30 percent increase in these same three years. Additionally, the Fed’s report showed that retirement accounts’ average value in the country increased as well during the pandemic.
Despite these numbers, separate data revealed that persistent higher prices and inflation have been severely affecting people’s purchasing power in the country. San Francisco’s Federal Bank even estimated that, during the pandemic, US citizens accumulated $2.1 trillion in extra savings, but only $190 billion was left by June of this year.
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