Recent Developments RSS Data Download

The recent developments discussed below refer to data through June 30, 2022.

  • Household net worth decreased by $6.1 trillion in the second quarter, primarily driven by a drop in stock prices.
  • Household debt grew at an annual pace of 7.4%, reflecting strong growth in both home mortgages and consumer credit.
  • Nonfinancial business debt increased at an annual rate of 7.7%, boosted by a rapid expansion in mortgages and other loans at depository institutions.1

Household Net Worth

The net worth of households and nonprofit organizations declined $6.1 trillion to $143.8 trillion in the second quarter. The value of stocks on the household balance sheet declined by $7.7 trillion, while the value of real estate increased by $1.5 trillion.

Directly and indirectly held corporate equities ($38.6 trillion) and household real estate ($41.2 trillion) were among the largest components of household net worth. Household debt (seasonally adjusted) was $18.6 trillion.

Household Balance Sheet Summary
Trillions of dollars
Description 2020 2021 2021:Q3 2021:Q4 2022:Q1 2022:Q2
Net Worth 131.15 150.01 145.08 150.01 149.86 143.76
Change in Net Worth 14.75 18.86 2.96 4.93 -0.15 -6.10
Equities 40.82 49.23 46.88 49.23 46.28 38.56
Change in Equities 6.71 8.41 0.05 2.35 -2.95 -7.72
Real Estate 33.00 38.12 36.82 38.12 39.74 41.20
Change in Real Estate 3.00 5.12 1.26 1.29 1.62 1.46

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

Nonfinancial debt

Household debt grew by 7.4% in the second quarter of 2022 (this and subsequent rates of growth are reported at a seasonally adjusted annual rate), a bit slower than in the previous quarter. Home mortgage debt expanded 8.8% while nonmortgage consumer credit increased by 8.5%, buoyed by continued high volumes of credit card borrowing and auto loans.

Nonfinancial business debt grew at a rate of 7.7%, reflecting strong growth in loans, particularly those from depository institutions. Federal debt increased by 5.6%. State and local debt increased by 1.6%.

The ratio of nonfinancial debt to GDP was little changed in the second quarter. The ratio has moved down substantially since the second quarter of 2020, when the measure spiked amid a pandemic-induced 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
Percent change, seasonally adjusted annual rate
Description 2020 2021 2021:Q3 2021:Q4 2022:Q1 2022:Q2
Total Nonfinancial 12.45 6.28 3.40 8.79 8.32 6.49
Households and Nonprofits 3.84 7.43 6.45 8.12 8.25 7.44
Nonfinancial Business 9.19 4.82 5.08 6.80 7.81 7.67
Federal Government 24.06 7.13 0.08 12.06 10.22 5.56
State and Local Governments 2.91 2.12 2.84 -1.01 -3.03 1.60
Debt Outstanding by Sector
Trillions of dollars, seasonally adjusted
Description 2020 2021 2021:Q3 2021:Q4 2022:Q1 2022:Q2
Total Nonfinancial 61.33 65.16 63.78 65.16 66.52 67.61
Households and Nonprofits 16.71 17.94 17.59 17.94 18.23 18.56
Nonfinancial Business 17.81 18.65 18.35 18.65 19.10 19.48
Federal Government 23.62 25.30 24.56 25.30 25.95 26.31
State and Local Governments 3.20 3.27 3.28 3.27 3.24 3.26

Looking at the various components of nonfinancial business debt, nonmortgage depository loans to nonfinancial business increased by $144 billion in the second quarter. Other types of loans, including mortgage loans and loans from nondepository institutions, also increased, while corporate bonds outstanding fell slightly.

Overall, outstanding nonfinancial corporate debt was $12.6 trillion. Corporate bonds, at roughly $6.7 trillion, accounted for 53% of the total. Nonmortgage depository loans were about $1.4 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 $1.5 trillion were nonmortgage depository loans.

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

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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.

  1. Depository loans include bank loans (bank credit) and loans from nonbank depository institutions such as credit unions and savings and loans associations.


Last Update: September 9, 2022