The net worth of households and nonprofits fell to $149.3 trillion during the first quarter of 2022. The value of directly and indirectly held corporate equities decreased $3.0 trillion and the value of real estate increased $1.7 trillion.
Household debt increased 8.3 percent at an annual rate in the first quarter of 2022. Consumer credit grew at an annual rate of 8.7 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 8.6 percent.
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 Q1 2022, household percent equity (of household real estate) was at 69.9% – up from 69.2% in Q4, 2021. This is the highest percent equity since the 1980s.
Note: This includes households with no mortage debt.
Mortgage debt increased by $222 billion in Q1.
Mortgage debt is up $1.27 trillion from the peak during the housing bubble, but, as a percent of GDP is at 49.1% – up from Q4 – 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 Q1, and is well above the average of the last 30 years.