U.S. household wealth reached an all-time high of $181.6 trillion in the third quarter of 2025, fueled by a surge in stock market investments, particularly in artificial intelligence (AI) companies, and continued gains in home values, according to new data released by the Federal Reserve on Friday.

This represents a $6 trillion increase from the $175.6 trillion recorded at the end of the second quarter in July, underscoring robust growth in household net worth despite ongoing economic uncertainties. The Fed’s quarterly release of national accounts data was delayed due to the record-long government shutdown that began at the start of the fourth quarter in October 2025.

Stock Market Boom Boosts Household Wealth

The value of U.S. households’ stock portfolios rose by $5.5 trillion during the third quarter. A significant driver was a frenzy of investments in AI stocks, which contributed to a 7.8% increase in the S&P 500 and an 11% rise in the Nasdaq 100, home to many of the largest AI-focused companies.

While the stock market gains were a major factor, real estate also contributed, with the value of household real estate holdings increasing by $300 billion in the same period.

Rising Household Debt

The Fed’s data also highlighted increases in household debt, which grew at an annualized rate of 4.1% in Q3 2025. This rise was led by:

• Mortgage debt: up 3.2%
• Consumer credit: up 2.3%

Despite the growing debt, overall household net worth continued to climb, indicating that asset gains significantly outweighed debt accumulation.

Federal Government Debt Accelerates

In addition to household financial trends, federal government debt growth accelerated sharply, rising at a 15.5% annualized rate during the July-to-September period. This was ten times the growth rate recorded in the previous quarter, reflecting continued fiscal expansion.

Economic Implications

The record household wealth reflects a combination of factors, including:

• Booming stock markets driven by AI and technology sectors
• Sustained growth in U.S. residential real estate values
• Strong consumer investment sentiment

Experts note that while wealth accumulation is positive for economic confidence, the rise in household and federal debt warrants careful monitoring, particularly as the economy enters 2026.