The net assets of American households increased by $2.2 trillion, reaching a new record high

As the stock market continues to rise at the end of the year, American household wealth reached a new record high in the fourth quarter. The Federal Reserve’s report released on Thursday shows that household net assets increased by $2.2 trillion from the previous quarter, reaching $184.1 trillion. Among them, the value of stocks held by American households increased by $1.6 trillion. The S&P 500 index continued its upward trend and set a record in the fourth quarter, boosting investor wealth. Optimism about artificial intelligence and corporate earnings prospects drove stock prices higher. The report also indicates that the value of real estate assets held by households decreased by approximately $347 billion, reflecting a softening in the real estate market. Meanwhile, consumer borrowing grew at an annualized rate of 3.3%, the slowest since the first quarter of 2025. Growth in non-mortgage consumer credit accelerated, while mortgage loan growth slowed significantly. Corporate debt balances grew at an annualized rate of 2.4%, the slowest in a year. On the public sector side, state and local government debt saw little to no growth, while federal borrowing increased at a strong pace. Including savings accounts, checking accounts, and money market funds, deposits held by households and nonprofit organizations grew by 3.3%, reaching a new record high of $20.5 trillion.