The Federal Reserve’s 2025 Survey of Consumer Finances finds that American families’ incomes and wealth generally increased between 2022 and 2025, but financial stress and debt burdens also grew. Real median family income rose 7% to $82,200, while median net worth increased 2% to $215,900. However, gains were uneven, with wealthier and older households generally benefiting more than younger families and renters.
Homeownership remained stable at 66%, but housing affordability stayed near historic lows, with the median home valued at more than 4.5 times median family income. Stock market participation slipped from 58% to 56%, even as median stock holdings among investors rose 36%. Retirement plan participation edged up to about 65%, while credit card debt increased and student debt declined modestly.
Financial vulnerability also worsened. The share of families spending more than 40% of their income on debt payments rose from 6.5% to 8.6%, while nearly 20% of families reported falling behind on loan payments, up from about 12% in 2022. Overall, the report paints a mixed picture: median incomes and wealth improved, but high borrowing costs, housing expenses, and growing payment difficulties continue to strain household finances.
