---
title: US household wealth hits a snag
description: The US household net worth dropped for the first time in two years.
---

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# [US household wealth hits a snag](https://hs-sbup.thehustle.co/news/06132022-us-household-wealth)

 Written by [Juliet Bennett Rylah](https://hs-sbup.thehustle.co/news/author/juliet-bennett-rylah) | Jun 13, 2022 5:58:59 AM

US household net worth dropped in Q1 of 2022, the first dip in two years, [per](https://www.federalreserve.gov/releases/z1/20220609/html/recent_developments.htm) the Federal Reserve. This was largely driven by the stock market’s recent downtown.

#### **What’s that mean?**

Overall, household net worth decreased by $540B to $149.3T.

Household net worth is determined by subtracting liabilities from assets.

- Liabilities include debt, which grew 8.3%, slightly more than last quarter.
- Assets include the things you own, like real estate.

Real estate values jumped $1.6T this quarter, but that wasn’t enough to fully offset a $3T drop in the value of corporate equities — AKA stocks — held by households.

#### **The last decline came in Q1 2020…**

… at the beginning of the pandemic. But as many homes received stimulus payments, net worth rose to a record $149.8T in Q4 of 2021.

Now, even with stocks down, bank accounts remain $39T above pre-pandemic levels, [per](https://www.businessinsider.com/american-household-wealth-drops-stock-market-slump-real-estate-gains-2022-6) *Bloomberg*.

#### **Meanwhile…**

… inflation rose [8.6%](https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html) YoY in May, the highest increase since 1981. In the past year, fuel prices alone are up 106.7%. In an effort to curb this, the Federal Reserve has [raised interest rates](https://www.npr.org/2022/05/04/1096111642/federal-reserve-interest-rates-inflation-prices).

And [according to* MarketWatch*](https://www.marketwatch.com/story/u-s-household-net-worth-declines-in-first-quarter-on-lower-stock-prices-11654793543), it’s the financial health of US households that will determine whether the economy can withstand those hikes.

[View full post](https://hs-sbup.thehustle.co/news/06132022-us-household-wealth)

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