Fed's Flow of Funds: Household Net Worth Increased $4.8 Trillion in Q3 - InvestingChannel

Fed’s Flow of Funds: Household Net Worth Increased $4.8 Trillion in Q3

The Federal Reserve released the Q3 2024 Flow of Funds report today: Financial Accounts of the United States.

The net worth of households and nonprofits rose to $168.8 trillion during the third quarter of 2024. The value of directly and indirectly held corporate equities increased $3.8 trillion and the value of real estate decreased $0.2 trillion..

Household debt increased 3 percent at an annual rate in the third quarter of 2024. Consumer credit grew at an annual rate of 2.5 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 3.1 percent.

Household Net Worth as Percent of GDP Click on graph for larger image.

The first graph shows Households and Nonprofit net worth as a percent of GDP.  

Net worth increased $4.8 trillion in Q3 to an all-time high.  As a percent of GDP, net worth increased in Q3 but is below the peak in 2021.
This includes real estate and financial assets (stocks, bonds, pension reserves, deposits, etc.) net of liabilities (mostly mortgages). Note that this does NOT include public debt obligations.

Household Percent EquityThe second graph shows homeowner percent equity since 1952.

Household percent equity (as measured by the Fed) collapsed when house prices fell sharply in 2007 and 2008.

In Q3 2024, household percent equity (of household real estate) was at 74.7% – down from 75.0% in Q2, 2024. This is close to the highest percent equity since the 1960s.

Note: This includes households with no mortgage debt.

Household Real Estate Assets Percent GDP The third graph shows household real estate assets and mortgage debt as a percent of GDP.  

Mortgage debt increased by $105 billion in Q3.

Mortgage debt is up $2.58 trillion from the peak during the housing bubble, but, as a percent of GDP is at 45.2% – down from Q2 – and down from a peak of 73.3% of GDP during the housing bust.

The value of real estate, as a percent of GDP, decreased in Q3 and is below the peak in Q2 2022, but is well above the median of the last 30 years.

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