Household Net Worth Surged After the Pandemic Hit

U.S. families’ wealth surged in the years after Covid-19 struck, adding to signs of consumer strength that could help the U.S. economy shake off the bite from higher interest rates. 

Households’ median net worth, or wealth, climbed 37% from 2019 to 2022, after adjusting for inflation, according to the Federal Reserve’s Survey of Consumer Finances released Wednesday. That was the largest increase since the survey—which comes out once every three years—began in 1989.

Rising home and stock prices that far outpaced inflation helped support the net worth increases. The rise in wealth was broad based across demographic and socioeconomic groups, in part reflecting the greater likelihood of middle-income and lower-income households to own stocks and homes last year than in 2019, Fed economists said.