US household wealth falls




The average American household has seen their wealth decline by thirty five percent between 2005 and 2010. The (American) Census Bureau’s points to falling real estate prices and stock market indices as main causes of this decline.

The median has fallen from $102,844 in 2005 to $66,740 in 2010. The house net worth is calculated by the value of assets minus the debt. [1] “2010?” you say. I know it’s 2012 now, but this news is news to me now too. I guess some things take a while.

The unemployment rate in the US currently sits at 8.2 percent. It’s been stuck at 8 percent and above since 2009. This, obviously can’t help pump up household net worth.

Education plays a role in Household net worth. It seems to have remained relatively high among households with more education, according to the 2010 statistics. Those households with a graduate or professional degree had a median worth of $245,763, while those holding only a high school diploma had a net worth of $42,223.


So what’s the moral of the story? Go to college, graduate, then more college. Well it works for some people. There are definitely many who benefit financially from higher education. We can also see examples of those who do quite well without it. This is a general statistic, so it will focus on what works best for most.

Another thing that could be inferred from this study is the fact that investments based on stock indexes can go against you. It’s a good idea to decide on sexist point when investing. If you have a predetermined number in mind, it will be possible to curb some of the loss that occurs in a market downturn.

Hopefully we will see the markets and house prices eventually recover, but hope is still just hope.

Tahric Finn


1.) Mutikani, Lucia. Falling house and stock prices erode US household wealth. The China Post. June 20, 2012. p7.

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