by Calculated Risk on 3/13/2025 12:00:00 PM
The Federal Reserve released the Q4 2024 Flow of Funds report today: Financial Accounts of the United States.
The net worth of households and nonprofits rose to
$169.4 trillion during the fourth quarter of 2024. The
value of directly and indirectly held corporate equities
increased $0.3 trillion and the value of real estate
decreased $0.4 trillion.
…
Household debt increased 3.1 percent at an annual rate
in the fourth quarter of 2024. Consumer credit grew at
an annual rate of 2.6 percent, while mortgage debt
(excluding charge-offs) grew at an annual rate of 2.2
percent.
Click on graph for larger image.
The first graph shows Households and Nonprofit net worth as a percent of GDP.
Net worth increased $0.2 trillion in Q4 to an all-time high. As a percent of GDP, net worth decreased in Q4 and is below the peak in 2021.
The second graph shows homeowner percent equity since 1952.
Household percent equity (as measured by the Fed) collapsed when house prices fell sharply in 2007 and 2008.
In Q4 2024, household percent equity (of household real estate) was at 74.4% – down from 74.7% in Q3, 2024. This is close to the highest percent equity since the 1960s.
Note: This includes households with no mortgage debt.
The third graph shows household real estate assets and mortgage debt as a percent of GDP.
Mortgage debt increased by $100 billion in Q4.
Mortgage debt is up $2.57 trillion from the peak during the housing bubble, but, as a percent of GDP is at 44.9% – down from Q3 – and down from a peak of 73.1% of GDP during the housing bust.
The value of real estate, as a percent of GDP, decreased in Q4 and is below the recent peak in Q2 2022, but is well above the median of the last 30 years.
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