Around the turn of the 21st century, the U.K. witnessed a dramatic surge in housing prices: the costs rose from four times peoples' annual earnings in 1995, to eight times by 2010. Homeowners subsequently enjoyed a wealth windfall, and it resulted in their kids receiving more housing wealth and higher-paying jobs, according to recent research from the Institute for Fiscal Studies. Lower-income renters, on the other hand, were faced with new affordability challenges.
US household net worth climbed to a record $176.29 trillion in the second quarter, according to data released Thursday by the Federal Reserve. That's an increase of $7.3 trillion from the first quarter of this year - and about $46 trillion more than in the final quarter of 2019, before the pandemic upended the economy. The surge was largely driven by Wall Street's continued rally.