Recent data from the Federal Reserve showed that, by the end of the third quarter, the average U.S. household recovered only 87 percent of the wealth lost during the recession.
The St. Louis Fed said in its December publication that the recovery is uneven across different parts of the country. The housing recovery in California, for example, has been stronger than in Missouri, due in part to home values and rate of appreciation.
“If the values of financial assets and house prices continue to increase rapidly, all three measures of household wealth [net worth in nominal terms, inflation-adjusted net worth and inflation-adjusted net worth per household] likely will exceed their pre-recession peaks in the near future,” the St. Louis Fed said.
Earlier this month, the Fed said household wealth had increased to an all-time high of $77.3 trillion. The data was adjusted for inflation and household growth.
In its publication, the Fed said that when average inflation-adjusted net worth exceeds its 2007 peak, it will mark the end of the longest period without reaching a new wealth peak in 30 years. Average inflation-adjusted net worth has not peaked since the end of 1984.