Household Net Worth Has Increased Relatively Steadily

Analysis of Household Net Worth Trends in the United States

On March 7, 2025, Herb Stein’s article “Balance of Payments” was discussed, sparking a lively conversation in the Comments section. One key point raised by frequent commenter Warren Platts was the decline in the U.S. Net International Investment as a percentage of GDP since 2007, currently standing at minus 90%.

While this may sound concerning, what truly matters to most Americans is the evolution of their own net worth over time. Upon closer examination of the data, a reassuring trend emerges.

According to the St. Louis Fed’s FRED site, U.S. households’ net worth in current dollars grew significantly from the 4th quarter of 1987 to the 4th quarter of 2024. Starting at $17.426 trillion in 1987, it surged to $160.345 trillion in 2024, marking a substantial 237% increase over 37 years.

During this period, the number of households also rose from 89.479 million to 132.216 million, leading to an average household wealth growth from $532,426 in 1987 to $1,217,504 in 2024, a 129% rise.

Examining a shorter timeframe from 2007 to 2024 reveals a similar positive trajectory. Household net worth jumped from $65.754 trillion in 2007 to $98.702 trillion in 2024, a 62.5% increase. Adjusting for the rise in the number of households from 116.011 million to 132.216 million, the household net worth per household climbed from $850,799 in 2007 to $1,217,504 in 2024, a 43% rise.

It is important to note that these figures represent averages rather than medians, with the net worth of a median household likely falling below the average. Nonetheless, the data suggest that on average, Americans are experiencing a growth in wealth despite the fluctuations in foreign investment.