It seems hard to believe, and it’s one of those cases where definitions matter, but…the average family in America are millionaires.
That’s according to the Federal Reserve’s latest authorative survey of consumer finances, and it comes with lots of asterisks attached.
But first, the data: the mean net worth of the average American household, even adjusting for inflation, was $1.06 million last year. Compared to 2019, that’s an increase of 23%, boosted by rising house prices and a surging stock market.
OK, here comes the but: the median net worth of the typical American household is just $192,900. That’s still an impressive, after-inflation gain of 37% over those three years, but it’s more in line with what everyday experience suggests.
The median household refers to the grouping smack in the middle of rankings. The average, or mean, gets boosted by the likes of billionaires Elon Musk and Jeff Bezos. The top 10% of American households by income have net worth, on average, of $6.63 million, according to the Fed.
Showing the huge importance of home ownership, house owners have an average net worth of $1.53 million, compared to just $155,000 for renters.
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