What Is the Average Net Worth in the US
Average net worth in the US is calculated by dividing total household wealth by the number of households. The Federal Reserve’s Survey of Consumer Finances provides the most widely cited estimates. Because wealth is unevenly distributed, the average is usually higher than the median.
Key Figures and Trends
In 2018, the average net worth of US households was roughly 690,000 dollars, while the median was around 97,000 dollars, according to the Federal Reserve. Real estate, retirement accounts, and financial assets are the main components of household wealth. Since 2016, overall net worth has risen, driven largely by gains in stocks and housing.
Why the Average and Median Differ
The average is pulled up by a small number of very wealthy households, making it higher than what most families actually hold. The median shows the midpoint, where half of households have more and half have less. For a typical household, the median figure is often a more useful measure of financial position.
Sources and Further Reading
The primary source for these figures is the Federal Reserve Board’s Survey of Consumer Finances. Additional context on wealth inequality can be found on the Federal Reserve website.
