The net worth of U.S. households fell by $1.3 trillion in the first quarter, a seventh straight decline that has seen household wealth drop by nearly $14 trillion, the Federal Reserve reported Thursday.
Household net worth fell at a 9.9% annual rate in the first three months of the year to $50.4 trillion, the lowest in more than four years. Net worth — assets minus liabilities — peaked at $64.4 trillion in the spring of 2007, the Fed said in its quarterly flow of funds report. Read more.
U.S. families have lost 22% of their wealth since the peak. Much of the loss came in the fourth quarter of 2008, when households lost $4.9 trillion.
Disposable personal income rose at a 5.4% annual rate in the quarter to $10.8 trillion annualized. Net worth fell to 4.67 times disposable income, the lowest since 1992.
Owners’ equity in real estate dropped to a record low 41.4% of its value.
