Home, stock values boost U.S. household wealth

WASHINGTON — U.S. household net worth jumped $1.3 trillion in the spring, fueled by gains in home and stock values.

The Federal Reserve said Wednesday that net worth rose to $74.8 trillion in the April-June quarter, up 1.8 percent from the first quarter. Home prices and stock markets have risen further since then, suggesting that Americans’ net worth is now even higher.

The gains in wealth haven’t been evenly distributed. Home ownership has declined since the recession, particularly among lower-income Americans. And the wealthiest 10 percent of households own about 80 percent of stocks.

Americans’ wealth bottomed at $57.2 trillion in 2008 during the Great Recession. It’s since risen $17.6 trillion.

Household wealth, or net worth, reflects the value of assets like homes, stocks and bank accounts minus debts like mortgages and credit cards.

Greater net worth can boost consumers’ willingness and ability to spend. That could accelerate economic growth. Some economists say higher household wealth enabled Americans to spend more this year despite higher Social Security taxes and higher income taxes on wealthier Americans that took effect at the start of the year.

Home values rose $525 billion in the April-June quarter, stock and mutual fund portfolios $300 billion.

Consumers took on slightly more debt last quarter, mostly in the form of auto and student loans. Credit card debt rose slightly, too.

On Friday, the Fed revised up its previous data on household wealth to reflect changes in the government’s accounting of pension promises. The government now counts benefits that are promised by pension plans as an asset. This change added about $3 trillion in wealth to previously reported figures.

More in Local News

If vehicles crash and tumble, rescuers want to be ready

The Puyallup Extrication Team practiced with other fire departments on cars, SUVs and even buses.

Man arrested after stolen car crashes in Everett

The accident occurred in the 100 block of SE Everett Mall Way.

5-vehicle crash in Arlington kills 62-year-old woman

Medics had transported her to the hospital, where she later died.

2 men hospitalized after rollover collision on U.S. 2

Two men were taken to the hospital with minor injuries… Continue reading

Marysville police serve a warrant — across the street from HQ

A man who fled was taken into custody. Police were serving a warrant for alleged drug-related crimes.

Marysville man charged with stabbing wife who sought divorce

Nathan Bradford, 45, found divorce papers while going through the woman’s car.

Man on ferry accuses child of theft, allegedly pulls knife

The man was arrested, no one was hurt, and the ferry was delayed 30 minutes on its way to Mukilteo.

Coming together as family

Special-needs students and teachers at the Transition Center cooked up a Thanksgiving feast.

Lynnwood’s property tax promise to homeowners sort of true

They were told consolidation of fire departments would save, but new rates likely will be more.

Most Read