Young US households — those aged 35-to-44 — lost a stunning 59 percent of their wealth during the recession, a government report released yesterday revealed.
That’s the stiffest hit of any age group, said the report from the US Census Bureau.
The age group — typically struggling with mortgages, tuition bills and rising tax bills — makes up the backbone of America’s middle class.
The losses were mainly due to the drop in the value of their homes during the 2005 through 2010 period, the report said.
“Lower- and middle-income households got especially creamed because their biggest asset is their home, and that got crushed,” said Mark Zandi, chief economist at Moody’s Analytics.
Overall, the average family lost 35 percent of its household wealth, composed largely of home values and stock investments.
The plunge in real estate and securities, among other negative events, left the average family holding net assets valued now at $66,704, a steep drop from $102,844 in 2010.
The Census Bureau said education was a big factor in how much net worth a household held.
In 2010, the agency said, those with a graduate or professional degree had a net worth of $245,763 while those with just a high school diploma had a net worth of just $42,223.
Those with a bachelor’s degree had a net worth of $142,518.
Fledgling households, headed by a person 35 or younger, suffered a 35 percent drop in net worth to around $35,100.
Things were a bit better for older Americans. Those 65 years old and older saw their net worth fall by 13 percent over the five-year stretch.