Published
American families gained ground on income and wealth between 2022 and 2025, but more struggled to keep up with their bills. That mixed picture emerges from the Federal Reserve’s October 2026 report, "Changes in U.S. Family Finances from 2022 to 2025".
Based on the Survey of Consumer Finances, the report examines income, savings, housing, investments, and borrowing. Its central finding: stronger family balance sheets can coexist with growing pressure on monthly budgets.
Unless otherwise noted, the dollar figures below are adjusted for inflation and expressed in 2025 dollars.
Typical Family Income Rose
Median family income increased 7 percent, rising from $76,900 to $82,200. Because the survey measures income for the preceding calendar year, those figures compare income in 2021 and 2024.
The median represents the midpoint: half of families earned more and half earned less.
Average income moved in the opposite direction, falling 6 percent to $145,200, largely because of declines among families at the top of the income distribution. Together, these changes suggest that income inequality narrowed somewhat.
Income gains were not universal. Black non-Hispanic families and Asian families experienced declines in both median and average income.
Uncertainty also increased. Thirty-seven percent of families said they did not have a good idea of their income for the following year—the highest share recorded by the survey.
Wealth Increased, but Gains Were Uneven
Median family net worth—the value of assets minus debts—rose 2 percent to $215,900. Average net worth increased more rapidly, climbing 7 percent to approximately $1.24 million.
The large gap between median and average wealth reflects the concentration of assets among wealthier families.
Older families and families near the top of the income and wealth distributions generally experienced stronger gains. Younger families, renters, and families without a high school diploma often lost ground.
For families whose reference person was younger than 35, median net worth fell 23 percent to $33,000. The report found little overall change in wealth inequality.
Housing Helped Owners Build Wealth While Affordability Remained Difficult
The homeownership rate held roughly steady at 66 percent.
Among homeowners, median net housing wealth—the home’s value minus debt secured against it—increased from $218,900 to $230,000.
For prospective buyers, however, affordability remained near a historical low. The median home was worth more than 4.5 times median family income.
Housing therefore remained a source of wealth for existing owners while presenting a substantial barrier for families trying to buy.
Investment Balances Grew Among Participating Families
Stock market participation slipped from 58 percent to 56 percent of families. Among families holding stocks directly or indirectly, however, median holdings rose 36 percent, reaching $77,400.
Retirement plan participation edged up to approximately 65 percent. This measure includes retirement accounts and defined benefit pension plans.
Among families with retirement accounts, the median balance increased 11 percent to $106,000.
These gains strengthened the finances of participating families, but they did not reach everyone: a substantial share of families remained outside the stock market or retirement system.
Credit Card Balances Rose as Student Debt Declined
Approximately 77 percent of families had some form of debt, little changed from 2022.
Credit card borrowing increased among families carrying balances:
| Measure | 2022 | 2025 |
|---|---|---|
| Median credit card balance | $2,950 | $3,100 |
| Average credit card balance | $6,700 | $8,000 |
Approximately 45 percent of families carried credit card debt after their last payment. The sharper increase in the average than in the median indicates that larger balances had a greater influence on the overall average.
Student debt moved in the opposite direction. The share of families holding student loans declined from 22 percent to 20 percent. Among borrowers, median balances fell 5 percent to $25,600, while average balances declined 16 percent to $43,000.
More Families Struggled to Make Payments
The clearest warning came from debt repayment measures.
Among families carrying debt, the median share of income devoted to debt payments rose from 13.4 percent to 15.4 percent.
The share of families whose debt payments exceeded 40 percent of income increased from 6.5 percent to 8.6 percent.
Late payments also became substantially more common. Among families with debt at the time of the interview:
- 19.6 percent reported being late on a loan payment during the preceding year, up from 12.2 percent.
- 8.2 percent reported being at least two months late, up from 4.9 percent.
These findings help explain why rising asset values do not necessarily translate into financial comfort. Home equity and retirement savings can strengthen long-term finances while remaining difficult to use for everyday bills.
The survey portrays an economy in which many families made progress, but an increasing share faced trouble meeting immediate obligations. Income, wealth, and the ability to make monthly payments tell different—and equally important—parts of the story.