WASHINGTON\u2014American families saw modest gains in income and wealth between 2022 and 2025, but a growing share struggled to keep up with debt payments, according to a new Federal Reserve report examining the financial condition of U.S. households.<\/p>\n
The Federal Reserve Board released its 2025 Survey of Consumer Finances on Friday, providing a detailed look at family income, assets, borrowing, retirement savings and financial vulnerability.<\/p>\n
The survey found that inflation-adjusted median family income increased 7% to $82,200, while average family income declined 6% to $145,200. The diverging figures suggest a modest narrowing of income inequality, as higher-income families experienced declines while many lower- and middle-income families saw gains.<\/p>\n
Median household net worth, which measures assets minus liabilities, increased 2% to $215,900. Average net worth rose 7% to approximately $1.24 million, reflecting continued gains in asset values.<\/p>\n
The wealth gains, however, were unevenly distributed.<\/p>\n
Families headed by individuals younger than 35 experienced a 23% decline in median net worth, falling to $33,000. By comparison, families headed by individuals 75 and older saw median wealth increase 37% to $504,900.<\/p>\n
The report found that homeowners generally benefited from rising property values. The national homeownership rate remained near 66%, while median home equity increased from $218,900 in 2022 to $230,000 in 2025.<\/p>\n
Housing affordability remained near historic lows, with the median home valued at more than 4.5 times median family income.<\/p>\n
Stock market participation declined slightly, with 56% of families reporting direct or indirect stock ownership compared with 58% in 2022. Among families holding stocks, however, median holdings increased 36% to $77,400.<\/p>\n
Retirement savings also improved. Participation in retirement plans increased slightly to approximately 65% among families headed by individuals younger than 65. Among families holding retirement accounts, median account balances rose 11% to $106,000.<\/p>\n
Despite those gains, the Federal Reserve found growing signs of financial pressure.<\/p>\n
The share of families carrying debt remained relatively stable at 77%, but the proportion spending more than 40% of their income on debt payments increased from 6.5% to 8.6%, reaching a level last recorded in the 2013 survey.<\/p>\n
The median debt payment-to-income ratio among borrowers increased to 15.4%, up two percentage points from 2022.<\/p>\n
Late payments also became more common. Nearly 20% of families reported falling behind on loan obligations, compared with approximately 12% in 2022. More than 8% reported being at least two months behind on payments.<\/p>\n
Credit card balances increased among borrowers carrying debt, with the median outstanding balance rising to $3,100 and the average reaching $8,000.<\/p>\n
Student loan debt moved in the opposite direction. The share of families holding education debt declined from 22% to 20%, while median student loan balances fell to $25,600.<\/p>\n
The report also highlighted differences in wealth between homeowners and renters. Median net worth among homeowners increased to $458,900, while median wealth among renters and other non-homeowners declined to $10,600.<\/p>\n
The Federal Reserve conducts the Survey of Consumer Finances every three years. The study examines a representative sample of American families and provides policymakers with information about financial conditions across income levels, age groups and other demographic categories.<\/p>\n
The 2025 results reflect an economy in which asset values and typical family incomes continued to rise, but higher borrowing costs and uneven wealth gains contributed to financial stress for a growing segment of American households.<\/p>\n