America’s shrinking household wealth

The net worth of American families is shrinking. The median net worth of households grew since 1989 till about 2005 when it started to shrink and today it stands lower than 1989. The loss occurred more rapidly than the time it took to build up the household wealth.

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Except for 75 and older age group, household wealth of every demographic category shank during the period of 2001 to 2010. Biggest lost experienced by the 35-44 year olds who lost closer to 50 percent of their household wealth. This scenario is also seen when it comes to income. Biggest lost occurred in the 20-40 percent family income group while the top 10 percent income ladder experienced an increase in their family wealth.

Housing price decline wiped out almost all the equity in most American households. According to a survey conducted by the Bloomberg Businessweek magazine, approximately 67 percent of a survey group lost 19 percent of their median home value.

The American households in the Midwest, West and South experienced a loss of home values while the Northeast region of the country experienced a slight increase. The household wealth of whites was negatively affected more than the non-whites.