The Chart Store had a fascinating series of charts this weekend looking at Household Net Worth in a variety of ways:

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Household Net Wealth Relative to GDP

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Household Net Wealth Relative to Peak and Trough

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Housing charts after the jump

Total Residential Real Estate Value

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Owner’s RE Equity (Value minus Debt)

Category: Real Estate, Wages & Income

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “Household Net Worth (Total Wealth, RE)”

  1. socaljoe says:

    This presentation suffers from fallacy of composition.

    Wealth may be created for an individual by trading financial securities, houses, tulip bulbs, or beanie babies back and forth at ever higher prices… but it can not be created in this way for society as a whole.

    The fallacy is always exposed when a significant percentage of owners want to realize their wealth by selling, thereby collapsing the price and aggregate apparent wealth.

    This chart may show what households think they are worth, but the wealth can never be realized.

    A better measure of wealth would be book value or replacement cost.

  2. rktbrkr says:

    We’re #1, we’re #1!

    We beat the first great depression for real estate collapse but the fat lady still hasn’t sung, what inning is it?

    Ben Shalom has gamed the wealth effect for commodities and securities but he hasn’t stopped the RE carnage. Thats the new Job #1, save his big bankster buddies from their RE dilemma. If priced are down 33% with banks holding REOs like a constipated python what happens to prices and further foreclosures and walkaways when the python blows the mother of all guvenderspurts?

  3. rktbrkr says:

    Whoops I did it again, forgot the RE record plunge (thus far) article

    http://www.cnbc.com/id/43395857

  4. constantnormal says:

    Ah, the miracle of the mythical “average household”. Break these apart into CEO households, worker households, retiree households, and unemployed households, and you would have a set of charts that are more dissimilar than similar.

    The utility of the “average household (worker, citizen, etc) only exists so long as we have the bulk of the people occupying a large and stable middle class.

    I don’t think that is the case these days. My perception (and it is only a perception) is that we have successfully split the Bananamerican economy (not unlike splitting the atom), and now have two economies, both of with are unstable isotopes, bound to decay into other forms over time.

  5. Deflator Mouse says:

    Where’s the next “bubble top”? I want to be rich again!

  6. Marc P says:

    Those are pre-inflation figures aren’t they? Can we see charts adjusted for Case-Shiller?

  7. tagyoureit says:

    I like to include goodwill and intangibles to my personal net worth calculations. For example, I’m an amazing musican, BMX racer, husband, father, and all around nice guy. Those qualities are easily worth tens of millions of dollars.

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    BR: LOL let me know when you find a buyer !

  8. Frwip says:

    Seconding constantnormal. Three guys in a bar, Bill Gates walks in, etc.

    Looking around, I see the same thing. It’s as if the American economy had discarded a whole chunk of the population then gone back to business as if nothing happened.

    We need a breakdown of those figures by income bracket and social category. Now, that would be interesting…

  9. beaufou says:

    This may be a stupid question but… is Relative to GDP a big factor?