Current Average and Median Net Worth
The latest Survey of Consumer Finances from the Federal Reserve reports the average US household net worth at roughly 1.2 million dollars, while the median sits near 192,000 dollars, reflecting a highly skewed distribution where a small share of families hold a large share of total wealth. The data, released in September 2023, covers 2022 balances and is the most recent comprehensive public dataset available from the Federal Reserve Board.
Net worth is calculated as total assets, including primary residence equity, financial accounts, and business interests, minus total liabilities such as mortgages, student loans, and credit card debt. Because the average is pulled up by the top percentile, the median is often a more useful benchmark for the typical American household when comparing wealth across age, race, and income groups.
Key Drivers of Household Net Worth
Real Estate and Home Equity
Home equity remains the single largest asset category for most US families, accounting for roughly 65 to 70 percent of total household assets for the bottom 90 percent of the wealth distribution, according to the Federal Reserve data. Rising home prices in many metropolitan areas during 2020 to 2022 boosted the net worth of owner-occupiers, while renters and those with underwater mortgages saw slower balance sheet growth.
Retirement Accounts and Financial Assets
Defined contribution plans such as 401(k) and 403(b) accounts, along with IRAs and taxable brokerage accounts, make up the second major pillar of household wealth, with the top quintile holding the majority of these balances. The Federal Reserve notes that the share of families owning retirement accounts has grown over the past two decades, though balances remain concentrated among higher income and white households.
Wealth Concentration and Inequality
Top Percentile Holdings
The top one percent of families by net worth hold roughly 30 percent of all US household wealth, while the bottom 50 percent hold close to 2 to 3 percent, according to the Federal Reserve's distributional tables. This concentration has remained elevated in recent survey years, with the wealth gap between the top and middle tiers continuing to widen in nominal terms.
Role of Public Companies and Private Equity
Ownership of equities, mutual funds, and private business interests is heavily skewed toward higher net worth households, with the top 10 percent holding the vast majority of directly held stocks and private equity stakes. Publicly traded companies such as Tesla and SpaceX, where insiders and early investors have accumulated significant paper wealth, illustrate how equity ownership in high-growth firms amplifies the net worth of the already wealthy, a dynamic documented by the SEC and financial research firms tracking insider holdings and wealth concentration.