The Average American Household Has A $1.06 Million Net Worth—Then Why Do People Still Feel So Broke?

Core Insights - The average U.S. household net worth is reported at $1.06 million, but this figure is skewed by a small number of ultra-wealthy households, with the median net worth significantly lower at $192,900 [2][3] - The disparity between average and median net worth highlights economic inequality, as half of U.S. households possess less than $192,900 in total assets [3] - Rising housing prices and costs of living are outpacing income growth, making it difficult for many to benefit from their reported net worth [6][9] Net Worth Composition - Net worth is defined as total assets minus liabilities, with assets including cash, investment accounts, real estate, vehicles, and life insurance [4][8] - Liabilities encompass mortgages, car loans, student debt, and credit card balances, which can significantly impact net worth calculations [4] Economic Context - The average U.S. home value has increased to $363,932, reflecting a 0.1% rise over the past year, complicating homeownership for first-time buyers [6] - The average cost of a new car is now $48,039, which is nearly equivalent to the U.S. median income, indicating a strain on consumer finances [9]