American Families’ Net Worth Drops
OriginationNews tells MHProNews.com primarily as the result of lost home equity, the median net worth of American families plummeted from $126,400 in 2007 to $77,300 in 2010, a drop of 38.8 percent in just three years. According to the Federal Reserve’s Survey of Consumer Finances in 2010, three-fourths of the loss was the fall in home equity. For the same period, average net worth dropped 14.7 percent, to $498,800 from $584,600. The previous three-year period, 2004-2007, median net worth increased 17.9 percent, while average net worth rose 13.1 percent. Median income fell less than net worth 2007-2010, dropping from $49,600 to $45,800, while average income fell from $88,300 to $78,500 during the same period.
(Graphic credit: HousingWire)