Key Facts
• U.S. household net worth fell by $1.6 trillion (0.9%) in Q1 2025 to $169.3 trillion.
• Stock market value dropped by $2.3 trillion due to tariff-related concerns.
• Real estate value declined by $227 billion, marking the third consecutive quarterly drop.
• Consumer borrowing increased at an annualized rate of 1.9%, the slowest in five years.
• Corporate debt rose 4.8% annually, the highest in nearly three years.
• Federal government debt growth slowed to its lowest since Q3 2021.
• Household deposits, including savings and money market funds, rose 2%, reaching a record high.
• S&P 500 rebounded sharply after tariff reductions, suggesting asset recovery in Q2 2025.
Summary
U.S. household net worth experienced its first decline since 2023, dropping by $1.6 trillion in Q1 2025 to $169.3 trillion. The decrease was driven by a $2.3 trillion loss in stock market value, attributed to concerns over tariff policies. Real estate values also fell by $227 billion, continuing a three-quarter downward trend. Consumer borrowing growth slowed to 1.9%, the lowest in five years, while corporate debt surged 4.8%, the highest in nearly three years. Federal government debt growth decelerated to its lowest rate since Q3 2021. Despite these declines, household deposits increased by 2%, reaching a record high. The S&P 500 index rebounded sharply following tariff reductions, indicating potential recovery in Q2 2025.
