Family Net Worth Down to Early '90s Level
The Federal Reserve released its Survey of Consumer Finance, a grim look at how badly American families suffered during the recent recession. The report covers the years 2007 to 2010, documenting the rout of the so-called Great Recession.
According to the report:
- The median family had a net worth of $77,300 in 2010, down from $126,400 in 2007 - down to levels last seen in 1992. A drop in home prices is a big reason behind this loss.
- More families said they were saving as a precautionary measure to make sure they had funds to meet short-term needs. Fewer said they were saving for retirement, education or for a down payment on a home.
- The losses of income and wealth fell most heavily on the middle income groups. Families with incomes in the bottom and top 20 percent of the population had smaller percentage losses than families in the middle 60 percent.
- The homeownership rate, which had risen noticeably between the 2001 and 2004 surveys, continued to trend downward and was down to 2001 levels.
- This survey is conducted every three years. Full report HERE.