Household Net Worth Hits Record High in 2006
WASHINGTON (Dow Jones News) --U.S. households' total net worth rose 2.5% to a record $55.63 trillion in the fourth quarter of 2006 (see chart above), mainly reflecting gains in their corporate equities holdings, the Federal Reserve said Thursday. Key points:
1. Household net worth grew for the 17th consecutive quarter.
2. The record $55.63 trillion posted in the most recent quarter was up from the third quarter's $54.25 trillion, the previous record high.
3. The 2.5% growth in the fourth quarter was faster than the third quarter's 1.6%.
4. Household net worth in the fourth quarter rose to about 5.75 times disposable personal income, from a third-quarter level of about 5.67 times income.
5. From 2005 to 2006, household net worth increased by $3.83 trillion, or about $13,000 per person annual increase in net wealth, or almost $52,000 per household of 4!
6. The $56.3 trillion in total net worth works out to about $188,000 per person, or $752,000 for a household of 4.