However, the poorest households, whose average net worth decreased by 12% from the first to the second quarter, more than twice the rate of the wealthiest households, felt the effects of the recent economic downturn the most keenly.
According to the report, higher-than-average debt growth is to blame for losses in wealth for the least wealthy.
Read more: Debt among seniors is a growing issue
The study discovered that, when compared to older households, younger households experienced the fastest net worth decline. The average wealth of people aged 35 and under, 35 to 45, and 65 and older decreased by 8.2%, 6.1%, and 6.1%, respectively, from the first quarter.
Since younger households rely more on housing as a source of wealth than older households do, they are more impacted by declining real estate values. When the stock and housing markets recover, younger households can recoup their net worth.
