US Household Wealth Shifts Toward Equities Over Real Estate
Equities now account for the largest share of US household net worth in Federal Reserve records, surpassing residential real estate. In Q3 2026, corporate equities represented 39.9% of total household wealth at $74.03 trillion, while home equity dropped to 19.3%, or $35.81 trillion. This marks a significant shift from historical trends where property typically held more value. The gap between the two asset classes has widened by over 20 percentage points since early 2022 as equities gained and housing lost ground in real terms due to inflation outpacing price growth. The Nasdaq Composite reached record highs, while home prices have stagnated for months despite nominal gains. Analysts suggest the trend may continue depending on stock market performance through year-end. Forecasts vary widely from a potential decline of 4.7% at Bank of America's target to more optimistic projections by UBS and others.
Topics: Equities vs Real Estate Federal Reserve Data Household Net Worth