The median wealth of the American family has plunged nearly 40 percent between 2007 and 2010, dropping net worth to its lowest level since 1992, according to a recently released report from the Federal Reserve.
The report shows the median wealth of families dropped from $126,400 in 2007 to $77,300 in 2010.
Families whose share of assets was placed in housing saw the biggest drop in median net worth, such as those in the west region where there was a 55.3-percent decline, according to the report.
The Fed says it’s the fall in home values that is harming the wealth of families.
“Although the overall level of debt owed by families was basically unchanged, debt as a percentage of assets rose because the value of the underlying assets, especially housing, decreased faster,” the Federal Reserve’s report said.
Home prices fell 22.4 percent between 2007 and 2010, which put prices 27.5 percent below the peak reached in April 2006, according to the Fed report.
Recovery from the recession has been slow, the Fed said in its report.
EMAIL: [email protected]