Board of Governors of the Federal Reserve System

Household Net Worth

The net worth of households and nonprofit organizations increased by $5.3 trillion to $150.3 trillion in the fourth quarter. Robust gains in house prices and stock prices accounted for much of the increase in net worth, as the value of real estate held by households increased by about $1.5 trillion and the value of corporate equities increased by $2.5 trillion. After several quarters of solid growth, household net worth is now $33.5 trillion above its pre-pandemic level at the end of 2019.

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Directly and indirectly held corporate equities ($49.6 trillion) and household real estate ($38.1 trillion) were among the largest components of household net worth. Household debt (seasonally adjusted) was $17.9 trillion.

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Household Balance Sheet Summary

For more data on household net worth, see table B.101

Nonfinancial debt

Household debt grew by 8.0% in the fourth quarter of 2021 (this and subsequent rates of growth are reported at a seasonally adjusted annual rate), about in line with the growth in the third quarter. Home mortgages increased by 8.0%, spurred by rising home prices and sale activity, and nonmortgage consumer credit increased by 6.9%, because of a large increase in credit card debt and a moderate increase in auto loans.

Nonfinancial business debt grew at a rate of 6.7%, reflecting growth in loans, both from depository institutions and from nondepository institutions, while corporate bonds declined. Federal debt increased by 10.8%. State and local debt decreased 0.9%.

As GDP grew faster than debt in the fourth quarter, the ratio of nonfinancial debt to GDP edged down a bit further, though it remains above its pre-pandemic level. In the second quarter of 2020, the ratio had spiked, driven by the drop in GDP and the expansion in federal debt related to the fiscal stimulus.

For more data on nonfinancial debt, see table D.1 (rates of growth) and table D.3 (outstanding).

Debt Growth by Sector

Debt Outstanding by Sector

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Looking at the various components of nonfinancial business debt, nonmortgage depository loans to nonfinancial business increased by $96 billion in the fourth quarter. Loans from nondepository institutions and commercial mortgages also increased. In contrast to loans, corporate bonds outstanding declined.

Overall, outstanding nonfinancial corporate debt was $11.7 trillion. Corporate bonds, at roughly $6.7 trillion, accounted for 57% of the total. Nonmortgage depository loans were about $1.1 trillion. Other types of debt include loans from nonbank institutions, loans from the federal government, and commercial paper.

The nonfinancial noncorporate business sector consists mostly of smaller businesses, which are typically not incorporated. Nonfinancial noncorporate business debt was $6.9 trillion, of which $4.9 trillion were mortgage loans and $1.6 trillion were nonmortgage depository loans.

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For more data on nonfinancial business balance sheets, including debt, see tables B.103 and B.104.

Coming soon

• The Distributional Financial Accounts, which provide a quarterly estimate of the distribution of U.S. household wealth, will be published on Friday, March 18. Other Enhanced Financial Accounts Projects (www.federalreserve.gov/releases/efa/enhanced-financial-accounts.htm) will also be updated on Friday, March 18.
• Financial Accounts data for the first quarter of 2022 will be published on Thursday, June 9, 2022, at 12:00 noon.

Chart Notes

1. Changes in net worth consist of transactions, revaluations, and other volume changes. Corporate equity and debt securities include directly and indirectly held securities. Real estate is the value of owner-occupied real estate. Other includes equity in noncorporate businesses, consumer durable goods, fixed assets of nonprofit organizations, and all other financial assets apart from corporate equities and debt securities, net of liabilities, as shown on table B.101 Balance Sheet of Households and Nonprofit Organizations.