A record $1.2 trillion increase in real estate valuations coupled with a strong stock market helped increase the U.S. household net worth in the second quarter of the year.
According to the latest Federal Reserve report, U.S. household net worth rose by 4.3 percent to $141.7 trillion in Q2—an increase of $5.8 trillion.
In addition to property investments, stocks were a major driver behind the increase. According to Bloomberg, equities as a percentage of household assets rose to 29.5 percent in the quarter. Private savings were also up by some $2.9 trillion in Q2, adding to $4.8 trillion from Q1.
Also on the rise: debt. Consumer credit outstanding not including mortgage debt rose by $91.2 billion in the second quarter. Bloomberg also notes that business debt increased by $63.2 billion from Q1 to a total of nearly $18 trillion.