At $18.4 trillion, residential real estate now commands a record 37 percent of overall household net worth. In the second quarter, real estate assets grew by nearly 4 percent, dwarfing the 2 percent growth in overall assets.
Good old cash amounted to $5.6 trillion, or 11 percent of net worth.
But that's still not the whole picture. At $11.1 trillion, household debt was twice that.
There does seem to be much new found wealth in the area associated with recent real estate gains. I hope that those who are heavily leveraged have the ability to step back and think about paying down the debt before buying more real estate or a depreciating asset like a new car. Having rode the Internet wave and the downturn that followed, I have seen paper fortunes vanish in the blink of an eye.
This little piggy bank stays home [Dallas Morning News]