Housing Rebound Broadens the Wealth Recovery But Much More is Needed

November 9, 2013 5:00am by Admin Tim

Housing Rebound Broadens the Wealth Recovery But Much More is Needed
William R. Emmons and Bryan J. Noeth
St. Louis Fed, November 2013

When adjusted for inflation and growth in the number of households, however, average real net worth has recovered only 76 percent of the loss incurred between 2007 and 2009. The slow recovery of wealth is due primarily to housing, which only began to rise in value at the beginning of 2012. The faster recovery of financial assets mainly has benefited wealthier families, who own most of the economy’s stocks and other financial assets. In this article, we show that the nascent housing recovery appears to reflect rising prices of relatively more expensive houses. This also likely benefits wealthy families more than those who own lower-value houses or are renters.

Source:
Housing Rebound Broadens the Wealth Recovery But Much More is Needed
By William R. Emmons, Bryan J Noeth
St Louis Fed, November 01, 2013
https://www.stlouisfed.org/publications/in-the-balance/2013/housing-rebound-broadens-the-wealth-recovery-but-much-more-is-needed

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