Housing values push Americans’ total wealth to record $88T

The nearly $500B jump in resi real estate values drove the growth in wealth

TRD MIAMI /
Jun.June 11, 2016 09:30 AM

From the New York site: Rising home values helped push the overall wealth of Americans to a total of $88.1 trillion through the first quarter of this year – an all-time record.

A $498 billion increase in residential real estate values nationwide drove the jump in wealth, offsetting a shaky stock market in the first three months of the year that saw the overall value of equities fall $160 billion, according to a new Federal Reserve report released Thursday.

The news is a testament to the U.S. housing economy’s turnaround since the last recession in 2007 and subsequent global financial crisis the following year, according to the Wall Street Journal.

That downturn, which was precipitated by a housing bubble, saw households lose more than $12 trillion and resulted in Americans’ net worth bottoming out at $55 trillion in 2009.

While the figures are not adjusted for inflation, wealth growth has significantly outpaced inflation, the Journal reported, and the U.S. housing market’s rebound has hugely helped. Homeownership in the U.S. stands at 63.7 percent, and the increase in housing values is benefiting many middle-class households – even those who saw their homes go underwater in recent years as values plummeted.

Americans also aren’t taking on as much debt these days. While total household debt increased $17 billion in the first quarter, it remains lower than levels seen during the financial crisis. [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...