Household Net Worth Rose in the First Quarter

Household net worth rose in the first quarter of 2016 to $88.1 trillion, a 1.0% increase from the previous quarter and a 2.4% increase from a year ago.

Household holdings of nonfinancial assets increased during the first quarter, growing 1.8%. The majority of this increase came from real estate holdings, which increased by $498.4 billion. Growth in wealth derived from consumer goods increased by $53.1 billion, compared to a $52.1 billion increase in the fourth quarter.

Household and non-profit holdings of financial assets increased 0.4% from the previous quarter. The increase was largely due to increases in deposits and loans, which grew a combined total of $136.9 billion during the quarter. Holdings of debt securities and corporate equities declined, falling by a total of $222.5 billion.

Household nonfinancial debt increased at an annual rate of 2.7% during the first quarter, as consumer credit grew 6.1%. Mortgage debt grew at a 1.6% annual rate. The household savings rose to 5.7%, up from 5.3% in the fourth.

Nonfinancial business debt rose at an annual rate of 7.9%, up from a 5.3% rate in the previous quarter.

Federal government nonfinancial debt increased at a rate of 4.6%, down from a rate of 18.5% in the previous quarter which was due to “extraordinary measures” associated with the 2015 debt limit impasse. State and local government nonfinancial debt increased at an annual rate of 2.2.

Read the Federal Reserve release.