The average American's net worth is $620,654, but that's misleading

[genxlib]

3. I think it is even more misleading than that

I would live to know how much of the typical net worth comes from home equity. I suspect it is probably a fairly high percentage.

I can't help but think the housing market is in for a downturn. The math just doesn't work over the long term when the home prices increase so much faster than wages.

It crashed in 2008 and then they quickly rose back up. Covid just supercharged them more and they zoomed past what was previously known to be an unsupportable bubble level. It has already started to decline since 2022. Throw in the cost of insurance due to natural catastrophes and the cost of home ownership is simply beyond the reach of many middle class people.

There is a reason they were floating the idea of a 50 year mortgage.

In the end, a lot of people are counting on cashing out of an asset that may not actually be worth what they think it is worth.