by Calculated Risk on 1/09/2026 01:12:00 PM
The Federal Reserve released the Q3 2025 Flow of Funds report today: Financial Accounts of the United States.
The net worth of households and nonprofits rose to $181.6 trillion during the third quarter of 2025. The value of directly and indirectly held corporate equities increased $5.5 trillion and the value of real estate decreased $0.3 trillion.
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Household debt increased 4.1 percent at an annual rate in the third quarter of 2025. Consumer credit grew at an annual rate of 2.3 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 3.2 percent.
Click on graph for larger image.
The first graph shows Households and Nonprofit net worth as a percent of GDP.
Net worth increased $6.1 trillion in Q3. As a percent of GDP, net worth increased in Q3 but is still below the peak in 2021.
This includes real estate and financial assets (stocks, bonds, pension reserves, deposits, etc.) net of liabilities (mostly mortgages). Note that this does NOT include public debt obligations.
The second graph shows homeowner percent equity since 1952.
Household percent equity (as measured by the Fed) collapsed when house prices fell sharply in 2007 and 2008.
In Q3 2025, household percent equity (of household real estate) was at 71.6% – down from 72.0% in Q2, 2025
Note: This includes households with no mortgage debt.
The third graph shows household real estate assets and mortgage debt as a percent of GDP.
Mortgage debt increased by $108 billion in Q3.
Mortgage debt is up $2.99 trillion from the peak during the housing bubble, but, as a percent of GDP is at 43.9% – down from Q2 – and down from a peak of 73.1% of GDP during the housing bust.
The value of real estate, as a percent of GDP, decreased in Q3 and is below the recent peak in Q2 2022, but is well above the median of the last 30 years.
