US Household Net Worth Skews Heavily Toward Equities

Equities now represent 39.9% of US household net worth, the largest share recorded in Federal Reserve records. In the same quarter, owners' equity in residential real estate fell to 19.3%, widening the gap between the two measures to 20.6 percentage points. This trend reflects a shift in the US household balance sheet since the third quarter of 2022.

The divergence shows that household wealth has become heavily weighted toward equities, a trend that contrasts with historical patterns where property held the upper hand. This shift is linked to market returns, such as the Nasdaq Composite closing at a record 27,122.09 on September 21.