The net worth of households and non-profits has recovered completely from the recession and reached a new peak of over $70 trillion in the first quarter of 2013 according to data from the Federal Reserve Flow of Funds.
During the recession, the net worth of households and non-profits—the sum total of tangible assets such as real estate and financial assets such as savings and equities minus liabilities such as mortgages and other debt—took a beating, declining by more than $15 trillion from the first quarter of 2007 to the first quarter of 2009.
While a reduction of debt has led to some increase in net worth, the recovery of home and stock prices has had a much bigger effect. Household real estate accounts for $18 of the $83 trillion in household assets and owner’s equity in household real estate is $9 trillion of the $70 trillion in net worth.
This data marks the 14th consecutive quarter of year over year growth in net worth and the 3rd consecutive quarter of nearly 10 percent gain from a year earlier.
Households and non-profits are grouped together because current data collection by the Fed is not at a level of detail that would make separation of the two groups possible.