US Household Net Worth Posts Smallest Gain in a Year

US household wealth rose in the first quarter by the least in a year as gains in real estate and other assets offset a decline in the value of stock holdings.

Household net worth climbed $113.1 billion from the prior quarter to $183 trillion, a Federal Reserve report showed Thursday. The value of Americans’ equity holdings decreased $1.8 trillion in the three months ending in March, while the value of real estate holdings climbed more than $800 billion.

The S&P 500 fell sharply in March as conflict in the Middle East fueled a sharp surge in oil prices and fanned worries about inflation and growth. Equity prices have climbed since then but the rising cost of living remains a key concern for consumers and policymakers alike.

Meanwhile, household borrowing increased at a 2.6% annualized pace, as mortgage debt growth continued to slow. Deposits, which include savings and checking accounts and money market funds, rose roughly $400 billion.

Business debt outstanding, meanwhile, grew at the fastest pace in four years. In the public sector, state and local government debt also accelerated. Federal debt rose at a slower pace at the start of the year.