Family Net Worth Declines from 2007 to 2010

The Federal Reserve released a study indicating that between 2007 and 2010, the average American family’s net worth dropped about 40%. Much of this decline can be attributed to the sharp decline in housing values. The decline in housing values was the worst in the west and in the south, so people in those areas suffered the most.

In 2007, a median homeowner had a net worth of $246,000. In 2010, the median net worth of a homeowner dropped to $174,500. This lower rate has impacted savings rates, resulting in less Americans who are able to save. Credit card use went down, but the number of Americans who fell behind on debt payments grew from 7.1% to 10.8% over the three-year period.

See Charles Riley, Family Net Worth Plummets Nearly 40%,, CNNMoney, June 12, 2012.  

Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.