US Median Household Net Worth Declined 35 Percent

For the second time in as many weeks, the federal government is out with new numbers measuring the toll the Great Recession has taken on the nest eggs of ordinary Americans. The Census Bureau reported Monday that U.S. median household net worth declined 35 percent between 2005 and 2010, from $102,844 to $66,740, reflecting the plunge in housing prices and stock values.

That follows the Federal Reserve Board’s Survey of Consumer Finances, which was released last week and also shows that family income and net worth fell from 2007 to 2010. “The overall decline in net worth reflects drops in housing values and stock market indices,” Census Bureau economist Alfred Gottschalck said in a statement. Joseph Gagnon, senior fellow at the Peterson Institute for International Economics, agreed, saying that this drop “shouldn’t be too surprising considering we know house prices have fallen.”

Households led by people 65 and older saw the largest decline in median net worth, falling from $195,890 to $170,128. Other households saw their median net worth drop less in absolute dollar terms, though the decline, from $8,528 to $5,402, was greater in percentage terms for people 35 and younger. Read more >>