The Federal Reserve released the Q2 2023 Flow of Funds report today: Financial Accounts of the United States.
The net worth of households and nonprofits rose to
$154.3 trillion during the second quarter of 2023. The
value of directly and indirectly held corporate equities
increased $2.6 trillion and the value of real estate
increased $2.5 trillion.
Household debt increased 2.7 percent at an annual rate
in the second quarter of 2023. Consumer credit grew at
an annual rate of 2.3 percent, while mortgage debt
(excluding charge-offs) grew at an annual rate of 2.8
Click on graph for larger image.
The first graph shows Households and Nonprofit net worth as a percent of GDP.
Household percent equity (as measured by the Fed) collapsed when house prices fell sharply in 2007 and 2008.
In Q2 2023, household percent equity (of household real estate) was at 71.1% – up from 70.0% in Q1, 2023. This is close to the highest percent equity since the 1960s.
Note: This includes households with no mortgage debt.
Mortgage debt increased by $90 billion in Q2.
Mortgage debt is up $2.15 trillion from the peak during the housing bubble, but, as a percent of GDP is at 47.9% – down from Q1 – and down from a peak of 73.3% of GDP during the housing bust.
The value of real estate, as a percent of GDP, increased in Q2 – but is below the peak in Q2 2022 – and is well above the average of the last 30 years.