WASHINGTON—American 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.
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.
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.
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.
The wealth gains, however, were unevenly distributed.
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.
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.
Housing affordability remained near historic lows, with the median home valued at more than 4.5 times median family income.
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.
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.
Despite those gains, the Federal Reserve found growing signs of financial pressure.
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.
The median debt payment-to-income ratio among borrowers increased to 15.4%, up two percentage points from 2022.
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.
Credit card balances increased among borrowers carrying debt, with the median outstanding balance rising to $3,100 and the average reaching $8,000.
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.
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.
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.
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.