US Household Net Worth declined $36K on average

chart going down - BSN

(Best Syndication News) - According to the US Census Bureau, households in the US had a median decline in net worth of around 35 percent between 2005 and 2010. The net worth on average was $102,844 in 2005, and in 2010, it dropped down to $66,740. The main reason for the decline in net worth is from the reduced home values.

The US Census Bureau said that if you remove the home equity aspect, median household net worth actually increased by 8 percent between 2009 and 2010. The increase from the two years was $13,859 to $15,000, which is an additional $1,141 in net worth.

To come up with these figures, the US Census Bureau analyzed information from the Net Worth and Asset Ownership spreadsheets. The information was gathered from a Survey of Income and Program Participation. The value of assets subtracted by the debts determined the household’s net worth.

Census Bureau economist Alfred Gottschalck explained that the cause in decline in net worth was mostly from the drop in housing prices and the decline in the value of stock market investments.

Younger people saw the largest decline in net worth, with an average of 37 percent decline. Comparatively, people over the age of 65 had only a 13 percent lost in net worth.
The hardest hit for net worth lost was for households between the ages of 35 and 44; these households had a decline in median net worth between 2005 and 2010 of 59 percent.

The South had the highest net worth averages with $80,566. The lowest median net worth was the Midwest at $20,938. The Northeast had a median net worth of $34,824. The West had a median net worth of $31,025, but when you exclude the house equity it drops down to $14,799.

By: Dave Reddy

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