While most U.S. families experienced moderate increases in income and net worth in recent years, the share of families experiencing financial stress also grew, the Federal Reserve said in its triennial Survey of Consumer Finances, released today.
The year’s survey gauged consumer finances from 2022 to 2025. Real median family income rose 7% over the study period, while real mean family income fell 6%, according to the Fed. Families at the lower ends of the income and net worth distributions saw modest increases in median and mean income, while families at the upper ends saw declines.
“These patterns indicate that income inequality decreased slightly between surveys,” according to the report.
However, families were more likely to be behind on their financial obligations than at any point since 2010, the Fed said. The share of families that reported being behind on loan payments increased from about 12% to nearly 20%. In addition, more than 8% reported being two months late or more, up from 5% in 2022.
Other survey findings:
- The fraction of families with any type of debt was 77%, roughly the same as the previous survey.
- Forty-five percent of families reported holding credit card debt, or roughly the same as the previous survey. Median credit card debt increased by $150 to $3,100. Mean credit card debt rose by $1,300 to $8,000.
- The homeownership rate largely unchanged at 66%.
- More than 15% of families owned a privately held business.
