The net worth of the American family has fallen to its lowest level in two decades, according to government data released Monday, driven by a more than 40 percent drop in their stakes in their homes.
The Federal Reserve’s detailed survey of consumer finances
showed families’ median wealth plunged from $126,400 in 2007 to $77,300
in 2010 — a 39 percent decline. That put them on par with median wealth
The Fed’s data underscore the depth of the wounds of the Great
Recession and how far many families remain from healing. The median
value of Americans’ debt did not change between 2007 and 2010.
Meanwhile, the housing market crash inflicted particularly severe
damage, with the Fed showing that the median value of Americans’ equity
in their homes plunged 42.3 percent between 2007 and 2010.
survey is conducted every three years, and this report offers one of the
most exhaustive looks to date at the greatest economic upheaval in a
generation. Although there have been some signs that the recovery has
picked up steam — housing prices have begun to stabilize and
unemployment has fallen — Fed economists said those improvements largely
do not change the survey results.
“Recovery from the so-called Great Recession has also been particularly slow,” the Fed said in its report.