Net Worth: Best and Worst of States

$118,200: that was the median net worth of American households in 2019, according to the Census Bureau's 2020 Survey of Income and Program Participation. Net worth is calculated by subtracting a household's debts from its assets. The remainder is net worth—or wealth. 

Housing equity accounts for most household wealth. In 2019, American homeowners had a median of $130,000 in home equity (housing value minus housing debt). Excluding home equity, the median household net worth of Americans is just $41,200. 

Net worth varies greatly by state. Here are the states with the highest median net worth...

The five states with the highest median household net worth, 2019

1. Hawaii: $373,200

2. Massachusetts: $251,000

3. New Hampshire: $243,600

4. North Dakota: $241,000

5. Minnesota: $228,500

The median net worth of households in another three states—Colorado, South Dakota, and California—also exceeds $200,000. 

Here are the states with the lowest median net worth...

The five states with the lowest median household net worth, 2019

46. Tennessee: $70,100

47. West Virginia: $65,290

48. New Mexico: $56,450

49. Arkansas: $49,990

50. Mississippi: $40,280

Another 13 states have a median household net worth of less than $100,000, including Florida and Texas. The net worth of households in the District of Columbia is just $24,000. 

Source: Census Bureau, State-Level Wealth, Asset Ownership, & Debt of Households Detailed Tables: 2019

Kind of a Drag

Despite being more educated than any other generation, Millennials are having a tough time. They are highly educated but burdened by student debt. They graduated from college into the difficult job market following the Great Recession. Because of their financial hardships, they delayed marriage and homeownership. Consequently, Millennials have been behind older generations in their accumulation of wealth.  

The Center for Retirement Research (CRR) examines the economic status of Millennials using data from the  Federal Reserve Board's 2019 Survey of Consumer Finances. The CRR researchers, Anqi Chen and Alicia H. Munnell, compare the economic status of Millennials aged 28 to 38 in 2019 with Boomers and Gen Xers when they were that age. They find that older Millennials (born 1981-91) have caught up to late Boomers (1954-64) and Gen Xers (1969-79) in their income, marriage rate, homeownership, and labor force participation. But because of student loan debt, Millennial wealth still lags that of Boomers and Gen Xers. 

Among Millennial householders aged 34 to 38, for example, net worth is just 70 percent of their income. This is less than the 82 percent ratio for Boomers and far below the 110 percent ratio for Gen Xers at the same age. When the researchers took a look at what was holding Millennials back, the culprit turns out to be student loans. Among Millennials aged 28 to 38, fully 40 percent have student loan debt versus just 28 percent of Gen Xers and 17 percent of Boomers at that age. 

"Excluding student loans, the median net wealth-to-income ratio for the leading edge of the Millennial generation looks very similar to that for previous cohorts," Chen and Munnell report. Student debt, they conclude, is a constant drag on the Millennial balance sheet.

Source: Center for Retirement Research at Boston College, Millennials' Readiness for Retirement—A 2019 Update

Inheritances Fuel Wealth Disparity

The median net worth of Black householders under age 35 was just $600 in 2019, according to the Survey of Consumer Finances (SCF). This is just a fraction of the $25,400 median net worth of non-Hispanic white householders in the age group. The wealth gap does not disappear with age...  

Median net worth of Black and non-Hispanic white households by age of householder, 2019

	Black	non-Hispanic white
Under age 35	$600	$25,400
Aged 35 to 54	$40,100	$185,000
Aged 55-plus	$53,800	$315,000

One reason for the wealth gap between Blacks and non-Hispanic whites is disparity in the intergenerational transmission of wealth, according to an analysis by the Federal Reserve Board. Non-Hispanic white households are much more likely than Black households to receive financial gifts that boost their net worth—such as funds to pay for college or help buying a house. Non-Hispanic whites are also much more likely than Blacks to receive an inheritance.  

A substantial 30 percent of non-Hispanic white households have already received an inheritance, according to the 2019 SCF. Only 10 percent of Black households have received one. Non-Hispanic white households are also more likely than Black households to expect an inheritance in the future—17 versus 6 percent. These inheritances are often the seed money that helps parents gift their children with college tuitions and downpayments. And so it goes. 

Source: Federal Reserve Board, Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances

Family Home Still the Most Valuable Asset

The family home is still the single most valuable asset owned by the average American household. The primary residence accounted for 26 percent of the value of all household assets, according to the 2019 Survey of Consumer Finances. In second place is business equity, accounting for 19 percent. Retirement accounts are in third place (15 percent). 

Distribution of the value of household assets, 2019

Primary residence: 26.1%

Business equity: 19.5%

Retirement accounts: 15.1%

Pooled investment funds: 9.0%

Other residential property: 6.2%

Stocks: 6.1%

Transaction accounts: 4.8%

Nonresidential property: 3.0%

Vehicles: 2.7%

Other: 7.5%

Between 1989 and 2019, retirement accounts more than doubled as a share of total household assets—rising from 7 to 15 percent. Similarly, pooled investment funds (mutual funds) also grew in importance, climbing from just 2 percent of the total in 1989 to the 9 percent of 2019. The value of the family home, in contrast, fell during those years. The primary residence accounted for 31 percent of total household assets in 1989 and 26 percent in 2019. 

Source: Demo Memo analysis of the Federal Reserve Board's Survey of Consumer Finances 

Covid-19 Recession Endangers Black Wealth

First, the good news. The median net worth of Black households climbed 33 percent between 2016 and 2019, after adjusting for inflation. This was a much bigger increase than the 18 percent rise in the median net worth of all households during those years and far surpassed the 3 percent increase in the median net worth of non-Hispanic white households.

There's more good news. The wealth gap between non-Hispanic whites and Blacks narrowed between 2016 and 2019. Non-Hispanic white households had 10 times the wealth of Blacks in 2016. They had only 8 times the wealth in 2019.

Now for the bad news. The median net worth of Black households was just $24,100 in 2019. Sure, this is 33 percent more than in 2016, but it isn't much of a buffer during a pandemic. 

Median household net worth by race and Hispanic origin of householder, 2019

Non-Hispanic whites: $189,100

Hispanics: $36,100

Blacks: $24,100

Now for the really bad news. The gains made by Black households in the past few years are endangered by the coronavirus pandemic. To start with, Black households had less of a financial buffer than non-Hispanic whites or Hispanics. Now, the buffer is eroding in the struggle to stay afloat during the Covid-19 Recession. 

Blacks have been hit hard by Covid-19—physically and financially. As of mid-September, 1 in 1,020 Blacks has died of coronavirus, according to APM Research Lab—a higher rate than any other race or Hispanic origin group. The 52 percent majority of Blacks say they or someone in their household has experienced a loss of employment income since March 2020, according to the Census Bureau's Household Pulse Survey fielded in September. Thirty-two percent of Blacks expect to lose employment income in their household in the next four weeks. Among Black homeowners, 16 percent could not make last month's mortgage payment. Among Black renters, 24 percent missed last month's rent. Forty-three percent of Blacks have had trouble paying bills during the pandemic, according to a Pew Research Center survey. Forty percent have had to use money from their savings or retirement account to make ends meet. One in three has had to borrow money from friends or family to stay afloat. 

We won't know how much damage the Covid-19 Recession inflicts on Black household wealth until the results of the 2022 Survey of Consumer Finances are released in the fall of 2023. But, it's not looking good. The gains of the past few years may be wiped out. 

Source: Federal Reserve Board, 2019 Survey of Consumer Finances

Median Household Net Worth in 2019: $121,800

How wealthy is the average American household? We find out only every three years, which is a very long wait. Well, the wait is over but the moment is bittersweet. 

On the one hand, we now know that net worth climbed by a substantial 17.7 percent between 2016 and 2019, after adjusting for inflation—almost, but not quite, a record-busting increase (outdone only by the 18.4 percent increase between 2004 and 2007). On the other hand, because of Covid, who cares? Reviewing the  2019 numbers is like looking through an old family photo album of a time long ago and far away.

Still, the story must be told...

Median household net worth, 1989 to 2019 (in 2019 dollars)

2019: $121,800

2016: $103,500

2013:   $89,400

2010:   $90,700

2007: $149,400 (record high)

2004: $126,200

2001: $125,300

1998: $112,800

1995:   $96,500

1992:   $88,900

1989:   $93,600

Source: Federal Reserve Board, 2019 Survey of Consumer Finances

Millennial Wealth Is Below Expectations

The income and wealth of Millennials is lagging behind that of older generations at the same age, according to a study by the Federal Reserve Bank of St. Louis. The study examines the incomes and net worth of older Millennials, defined as those born from 1980 through 1989, and compares them to the finances of older generations when they were the same age.

The median net worth of the typical Millennial household is 34 percent less than expected when compared to older generations. They are behind by $12,000. "For someone at the beginning of adulthood, this is a lofty sum to miss out on," writes Ana H. Kent, a Fed policy analyst and one of the researchers. One of the reasons for the lower net worth of Millennials is that fewer are homeowners. Their homeownership rate is 4 percentage points below expectations.

But Millennials aren't suffering equally. The median household income of those with a bachelor's degree is 7 percent higher than expected, and their median net worth is only 6 percent below expectations—$55,000 versus an expected $58,000. The picture is not as rosy for Millennials without a bachelor's degree. Their median household income is 9 percent below expectations. Even worse, their median net worth is a stunning 44 percent below expectations—$14,000 versus an expected $25,000.

"For this generation of older millennials, having less money than older generations at the same age could be very problematic," concludes Hunt.

Source: Federal Reserve Bank of St. Louis, Are Millennials a Lost Generation Financially? and The Millennial Wealth Gap: Smaller Wallets than Older Generations

Most Older Homeowners Stay Put

Do older Americans stay in one home long enough to turn their home equity into an income stream, boosting their standard of living in retirement? That's the question posed by the Center for Retirement Research at Boston College. To determine the answer, CRR researchers estimated the housing trajectories of homeowners aged 50 or older to see whether they had enough residential stability to tap home equity. The answer is yes, according to CRR's analysis of data from the Health and Retirement study. Most older Americans stay put...

Housing trajectory of older homeowners from ages 50-54 to death
53% stay in their home until death
17% move at the time of retirement, then remain in their new home until death
16% stay in their home until a health shock forces them into a rental or long-term care facility
14% are frequent movers

"These findings largely support the narrative from previous research: most people want to age in place and usually move only in response to a shock," say the researchers. Consequently, most homeowners "experience enough residential stability to make tapping home equity through reverse mortgages or property tax deferrals a financially viable strategy."

Source: Center for Retirement Research at Boston College, Are Homeownership Patterns Stable Enough to Tap Home Equity?

Households with Zero or Negative Net Worth

Millions of American households have zero or even negative net worth, meaning the amount of money they owe equals or exceeds their assets. Twenty million households—16 percent of all households—are on this bottom rung of the net worth ladder, according to the Census Bureau's Survey of Income and Program Participation. These are their demographic characteristics...

• By age, the youngest householders are most likely to have zero or negative net worth. Among householders under age 35, a substantial 30 percent have no wealth. At the other extreme, householders aged 75 or older are least likely to have zero wealth (6 percent).
• By race and Hispanic origin, Households headed by Blacks are most likely to have zero or negative net worth (29 percent). Asian households are least likely to have no wealth (8 percent). 
• By education, 27 percent of households without any member who has a high school diploma have zero or negative net worth. Households with at least one member who has a graduate degree are least likely to be without wealth (11 percent).
• By income, 29 percent of households in the lowest income quintile have zero or negative net worth. This compares with just 5 percent of households in the highest income quintile. 
• By homeownership status, 34 percent of renters have zero or negative net worth versus just 5 percent of homeowners.

Source: Census Bureau, Wealth, Asset Ownership, and Debt of Households Detailed Tables: 2015

Student Loans Lower Black Wealth

The wealth gap between Blacks and non-Hispanic Whites is huge. The median household wealth of non-Hispanic Whites was nearly 10 times that of Blacks in 2016—$171,000 versus $17,409, according to an Urban Institute analysis of the Survey of Consumer Finances. While higher rates of homeownership among non-Hispanic Whites are the primary reason for this gap, another reason is student loan debt. Black households are more likely than non-Hispanic White households to have student loans, and Blacks owe more than non-Hispanic Whites. The percentage of Black households with student loan debt has more than doubled since 1989.

Percentage of Black households headed by people aged 25 to 55 with student loan debt, 1989 to 2016 (and average amount owed in 2016 dollars)

2016: 41.8% ($14,225)

2007: 28.3% (  $6,111)

2001: 18.5% (  $2,224)
1989: 17.9% (  $1,161)

Among non-Hispanic White households headed by people aged 25 to 55, a smaller 34 percent had student loan debt in 2016, owing an average of $11,108.

Source: Urban Institute, Nine Charts about Wealth Inequality in America (Updated)

10 Questions: An Update (Part 2)

Two years ago Demo Memo presented 10 vital demographic questions and asked how many answers to these questions we would have once we had more data in hand. Two years later, the same questions are still of great importance. We have more data. So how much more do we know? Questions 1 through 5 were examined in this post. Here's a look at the rest...

6. Is the average American getting richer? With the benefit of hindsight, the answer to this question is yes and no. The wealth of American households plunged in the aftermath of the Great Recession. Median household net worth fell from $139,700 in 2007 to a post-Great Recession low of $83,700 in 2013, then climbed to $97,300 in 2016, after adjusting for inflation—still 30 percent below the 2007 peak. An analysis by the Federal Reserve Bank of St. Louis finds that the wealth of Americans born in the 1950s and earlier has recovered from the Great Recession losses, while the wealth of those born in the 1960s, 1970s, and 1980s has not.

7. Who voted in the 2016 election? This question was answered by the Census Bureau's survey of voting and registration, released in the spring of 2017. We now know that the number of older non-Hispanic White voters surged in 2016. Largely because of the aging of the baby-boom generation, 2.8 million more non-Hispanic Whites aged 65 or older voted in 2016 than in 2012. This trend is only going to intensify as the baby-boom generation continues to fill the 65-plus age group. While minorities will become the majority of the population in 2044, they will not become the majority of voters until 2064.

8. Are we back to square one with health insurance? Although Republican efforts to repeal the Affordable Care Act have not been successful, this question still matters after a federal judge in Texas declared the entire Affordable Care Act invalid—a case that may be headed for the Supreme Court. Meanwhile, a growing share of the public has a favorable view of the ACA, the figure rising from 43 percent in November 2016 to 53 percent in November 2018. This battle is ongoing.

9. How big is the gig economy? Are gig workers a tiny and stable fraction of the workforce, or are they an enormous and growing share of workers—24 percent according to one study and 31 percent according to another? We still don't know. In the past year, the BLS failed in its attempt to measure the gig economy, but nevertheless claimed gig workers to be few, far between, and not growing as a share of workers. Researchers scoffed at the BLS findings, theorizing that the Current Population Survey's labor force questions failed to capture gig work. The BLS fired back with a defense of the CPS. As the dust settles from this kerfuffle, all we know is that the size of the gig economy ranges from negligible to enormous.

10. Are we over the automobile? The evidence is building that we are past the point of peak transportation spending. The percentage of the household budget devoted to transportation is well below the all-time high of 19-plus percent of the mid-1980s and early 2000s. In 2017, transportation consumed a smaller 15.9 percent of the household budget. With transportation the second biggest expense for the average household, helping Americans cut their transportation costs is a no-brainer for both businesses and governments. It also helps explain the appeal of cities: urban households spend much less than their rural counterparts on transportation.

What's Wrong with the White Working Class?

When the white working class sneezes, America catches a cold. The Federal Reserve Bank of St. Louis examines what may be ailing America in an analysis of trends in the wellbeing of this largest segment of Americans. It defines the white working class as households headed by non-Hispanic Whites without a four-year college degree. The white working class accounts for the 42 percent plurality of the nation's households. Another 26 percent are headed by whites with a college degree and 32 percent are headed by Blacks, Hispanics, and other minorities.

Using data from the Survey of Consumer Finances, researchers at the Fed analyzed trends in the socioeconomic wellbeing of the white working class, comparing its experience over the past few decades to that of college educated whites and to nonwhites. Relative to the other segments, the white working class has declined...

• The share of income accruing to the white working class fell from 45 percent in 1989 to 27 percent in 2016. Meanwhile, the share of income accruing to college educated whites and to nonwhites increased. 
• The share of wealth accruing to the white working class fell from 45 percent in 1989 to 22 percent in 2016. At the same time the share of wealth accruing to college educated whites and to nonwhites increased. 
• The median household income and median net worth of white working class households has fallen relative to the national medians, and their homeownership rate, marriage rate, and self-reported health status also have deteriorated.

These declines may be "the result of circumstances unique to the white working class," say the researchers. The circumstances include: 1) rising high school graduation rates for Blacks and Hispanics, which has increased the competition with nonwhites for jobs; 2) less racial and ethnic discrimination in the labor market, which has increased the competition with nonwhites for jobs; and 3) globalization, which has reduced job opportunities.

"The long-term decline of the white working class may be due, in part, to the reduction over time of their previous advantages over nonwhite working classes," the study concludes.

Source: Federal Reserve Bank of St. Louis, The Bigger They Are, The Harder They Fall: The Decline of the White Working Class

Growing Wealth Gap between Young and Old

Americans aged 65 or older are the beneficiaries of a growing share of the nation's resources, studies show, while children must make do with less. A paper published in Demography takes a look at the consequences of this disparity, and the results are troubling. Analyzing Survey of Consumer Finance data from 1989 to 2013, researchers Christina M. Gibson-Davis and Christine Percheski compare the wealth, income, assets, and debt of two types of households—those with children under age 18 (child households), and those with a householder or spouse aged 65 or older and no children under age 18 (elderly households).

Not surprisingly, elderly households have much greater wealth than child households, which is to be expected because older householders have had more time to accumulate wealth. The trouble lies in the growing gap between the two types of households. "In 1989, elderly households had a median net worth that was approximately 3.8 time that of child households ($106,647 vs. $27,889)," say the researchers, "by 2013, their median net worth was 12.5 times as high ($154,998 vs. $12,413)." Other findings:

• The median net worth of elderly households grew 45 percent between 1989 and 2013, after adjusting for inflation, while the net worth of child households fell 56 percent. 
• The median income of child households fell 1 percent between 1989 and 2013, while the income of elderly households increased 29 percent.
• The median assets of child households grew only 13 percent during those years while their median debt climbed 68 percent—from $29,915 to $50,300. The assets of elderly households grew by a much larger 75 percent, and their debt grew from a median of $0 to a modest $900.
• The homeownership rate of child households fell 2.6 percentage points between 1989 and 2013, and their home equity dropped 28 percent. The homeownership rate of elderly households climbed 10.8 percentage points and their home equity increased 28 percent. 

"The declining absolute and relative wealth holdings of most families with children is likely to impede the human capital development of the next generation of Americans," the researchers conclude. "We posit that such underinvestments in children are likely to have negative long-term societal consequences for the United States."

Source: Demography, Children and the Elderly: Wealth Inequality among America's Dependents ($39.95)

Do You Want To Be Rich? Only 61% Say Yes

A surprisingly modest 61 percent of Americans say they would want to be rich, according to a Gallup survey. Younger adults are most likely to yearn for wealth. They are also the ones most likely to think they will be rich someday...

Percent who would want to be rich (and percent who think it's likely they will be rich)
Aged 18 to 29: 67% (52%)
Aged 30 to 49: 69% (39%)
Aged 50 to 64: 59% (23%)
Aged 65-plus: 44% (10%)

Note: Percentages based on those who do not consider themselves rich.

Democrats are as likely as Republicans to want to be rich (60%), but they do not see eye to eye on another question. Fully 81 percent of Republicans think the U.S. benefits from having a class of rich people. Only 43 percent of Democrats agree.

Source: Gallup, Partisan Divide on Benefit of Having Rich People Expands

Are Those Born in the 1980s a "Lost Generation"?

Born in the 1980s? Then you belong to what could be a "lost generation." This is not a tabloid headline, but the considered opinion of the Federal Reserve Bank of St. Louis. In an examination of trends in household wealth, fed researchers determined which households had recovered from the Great Recession and which had not.

For the analysis, the researchers estimated typical life cycle wealth trajectories using the 1989 through 2016 Survey of Consumer Finances. They then compared actual wealth to expected wealth for household heads born in the 1930s, 1940s, 1950s, 1960s, 1970s, and 1980s. Two stories emerged, and only one had a happy ending.

• Here's the story with the happy ending: By 2016, the net worth of older Americans (born in the 1930s, 1940s, and 1950s) had recovered from the Great Recession. 
• Here's the other story: By 2016, the net worth of younger adults (born in the 1960s, 1970s, and 1980s) had not recovered from the Great Recession. Those born in the 1960s were still 11 percent short of their expected net worth in 2016. Those born in the 1970s were 18 percent short. Those born in the 1980s were even worse off. Their net worth was 34 percent short of what it should have been based on the lifecycle wealth trajectory of earlier generations.

Housing and mortgage debt explain the wealth shortfall for the 1960s and 1970s cohorts. These age groups bought homes during the housing bubble and lost equity when the bubble collapsed. Few in the 1980s cohort were homeowners during the housing bubble, so the shortfall is caused by other types of debt—student loans, auto loans, and credit card debt, say the researchers. There is still hope for those born in the 1980s, however, because of their high educational attainment and the many years of catch-up available to them. But, the feds conclude, "the 1980s cohort is at greatest risk of becoming a 'lost generation' for wealth accumulation."

Source: Federal Reserve Bank of St. Louis, A Lost Generation? Long-Lasting Wealth Impacts of the Great Recession on Young Families

College Grads Control 74 Percent of Household Wealth

More than one-third of households in the U.S. (34 percent) are headed by someone with a bachelor's degree or more education. A study by the Federal Reserve Bank of St. Louis examined data from the Survey of Consumer Finances to determine trends in the net worth of households by educational attainment of householder. Here are the findings...

Household net worth by educational attainment, 2016 (and 1989; in 2016 dollars)
Householder is a college graduate: $291,000 ($238,000)
Householder not a college graduate: $54,000 ($66,000)

The net worth of college graduates has increased over the decades, while the net worth of householders without a college degree has declined. Consequently, households headed by college graduates now control 74 percent of household wealth, up from 50 percent in 1989.

Source: Federal Reserve Bank of St. Louis, Income and Wealth Gaps: College Grads vs. Nongrads

Stocks Account for Bigger Share of Wealth

Stocks are a growing share of the wealth of middle-aged Americans, according to an analysis of the Survey of Consumer Finances by the Federal Reserve Bank of St. Louis.

In 2016, stocks accounted for 11 percent of the net worth of householders aged 41 to 60, more than double the 4 percent of 1989. Vehicles also grew in importance, with their share of the household wealth of the middle-aged rising from 14 to 19 percent. In contrast, the share of net worth accounted for by the principal residence of middle-aged householders fell from 46 to 37 percent during those years.

Despite the rising importance of stocks to the middle-aged, stock ownership is increasingly concentrated among the wealthy. In 2016, fully 78 percent of the stock market wealth of middle-aged Americans was owned by the wealthiest 10 percent of households—a record high.

Source: Federal Reserve Bank of St Louis, How Has Stock Ownership Trended in the Past Few Decades?

What Explains the Black-White Wealth Gap?

The median net worth of non-Hispanic White households was 9.7 times the net worth of Black households in 2016—$171,000 versus $17,600, according to the Federal Reserve Board's triennial Survey of Consumer Finances. The wealth gap is larger today than it was in the early 2000s, when the average non-Hispanic White household had "only" 6 to 7 times the wealth of the average Black household.

What's behind the growing wealth gap? Since non-Hispanic White and Black households are equally likely to be in debt (77.5 and 77.1 percent, respectively) and since non-Hispanic Whites owe more (a median of $74,100) than Blacks ($31,100), the wealth gap is not about debt.

The gap is about assets—in particular, homeownership. Only 44.7 percent of Black households were homeowners in 2016 versus a much larger 72.5 percent of non-Hispanic Whites. Black homeownership fell more than non-Hispanic White as the housing market collapsed with the Great Recession, and Black homeowners saw their houses lose much more value. For Black homeowners, median housing value fell 29 percent between 2007 and 2016—to $124,000, after adjusting for inflation. For non-Hispanic White homeowners, median housing value fell by a smaller 14 percent during those years—to $200,000. Since owned homes are the single largest asset for the average American household, these differences explain not only the large wealth gap but also why it has grown.

Source: Demo Memo analysis of the Federal Reserve Board's 2016 Survey of Consumer Finances

How Does 2016 Net Worth Compare?

Median household net worth climbed to $97,300 in 2016, reports the triennial Federal Reserve Board's Survey of Consumer Finances. The 2016 figure was 16 percent higher than in 2013, after adjusting for inflation, but fully 30 percent below net worth in 2007.

But comparing today's net worth with 2007 is perhaps a stretch because the 2007 figure was inflated by the housing bubble. So forget about 2007. Let's compare today's median household net worth with earlier years beginning with 1989, after adjusting for inflation...

$97,300 net worth of 2016 was higher than:
1989: $87,500
1992: $83,100
1995: $90,600

$97,300 net worth of 2016 was lower than:
1998: $105,800
2001: $117,300
2004: $118,400
2007: $139,700

The fact that net worth in 2016 was lower than in the years 1998 to 2004 is troubling. Net worth rises with age and should be at or near an all-time high today because of the aging of the baby-boom generation. Instead, net worth is well below the levels reached when the demographics were far less favorable.

Source: Federal Reserve Board, SCF Chartbook

Median Household Net Worth: $97,300 in 2016

After years of decline, household wealth is growing again, according to the triennial Survey of Consumer Finances. Median household net worth rose to $97,300 in 2016, 16 percent more than the $83,700 of 2013, after adjusting for inflation. Net worth is still 30 percent below the 2007 peak...

Median household net worth, 2007 to 2016 (in 2016 dollars)
2016: $97,300
2013: $83,700
2010: $85,400
2007: $139,700

Behind the rise in net worth are modest increases in the value of household assets. The median value of financial assets ($23,500) grew 7 percent between 2013 and 2016, after adjusting for inflation, but was still 30 percent below the 2007 level. The median value of nonfinancial assets ($158,900) climbed 4 percent during those years, but was still 23 percent below the 2007 peak. Meanwhile, median household debt ($59,800) was 4 percent lower in 2016 than in 2013 and a substantial 23 percent lower than in 2007.

Source: Federal Reserve Board, 2016 Survey of Consumer Finances