Americans’ net worth falls for the first time since the financial crisis amid stock selloff

The Federal Reserve reported that the net worth of American households fell by $3.73 trillion during last year's 4th quarter

National /
Mar.March 09, 2019 02:00 PM

(Credit: Pixabay)

The personal net worth of Americans fell in the fourth quarter of 2018 by the largest amount since the financial crisis.

The Federal Reserve reported that personal net worth had declined to $104.3 trillion by the end of December, down $3.73 trillion from the end of September.

It was the second-largest dollar decline in the personal net worth of Americans since the Fed began reporting the quarterly statistic.

The net worth of American households has increased 73 percent since 2009.

Much of the last year’s fourth-quarter decline stemmed from stocks amid widespread worry that the Federal Reserve would raise interest rates too fast.

American households watched the value of their stock investments drop by $4.6 trillion during last year’s fourth quarter, partially offset by a $300 billion increase in the value of their real estate holdings.

The 3.4 percent overall decline in American net worth coincided with 2.6 percent GDP growth during October, November and December.

Economists generally foresee slower economic growth this year. The Atlanta Fed has forecast GDP growth of 0.5 percent in 2019. [CNBC]Mike Seemuth


Related Articles

arrow_forward_ios
AIMCO founder Terry Considine and a rendering of the Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Miami Beach board rejects Aimco’s proposal for Grand Flamingo tower
Aventura Mayor Enid Weisman (Facebook via Weisman, Getty)
Aventura votes to require HOAs to submit critical reports within 48 hours
Aventura votes to require HOAs to submit critical reports within 48 hours
The current Miami Beach North Shore library with Mayor Dan Gelber (Google Maps, Gelber)
Miami Beach seeks buyers for city-owned development sites
Miami Beach seeks buyers for city-owned development sites
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
 Adam Neumann (Getty, Bal Harbour Florida)
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
arrow_forward_ios

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

Loading...