Allow a slight re-ordering of some key quotes from a recent Brookings Study.
American households held over $98 trillion of wealth in 2018.
In 2018, U.S. households held over $113 trillion in assets.
Real estate makes up the vast majority of nonfinancial assets.
American households also hold a lot of debt—over $15 trillion in 2018.
Not surprisingly, over two-thirds of that debt is in our homes.
That’s a lot of money, which bolsters the idea that the economy is improving. But most of the picture is related to real estate. Real estate is not evenly distributed. Duh. Much of the asset growth has gone to the top 1%. As asset growth grows, it naturally favors those with assets. The result is an inevitable increase in wealth inequality. There may be good news for the assets and liabilities within the economy, but the benefits are limited to a few.