Independent macro research firm Kobeissi Letter, citing Federal Reserve data, reports that U.S. household equity exposure as a percentage of net worth has risen to a record 39.9%. This figure represents a significant increase of 12.6 percentage points from the 2022 bear market. During the same period, the proportion of residential real estate equity held by households fell by 3.5 percentage points to 19.3%, the lowest level since the second quarter of 2021. Consequently, the gap between equity and real estate exposure has widened to a record 20.6 percentage points. In contrast, during the housing boom in the third quarter of 2005, real estate exposure peaked at 24.1%, exceeding equity exposure by 1 percentage point. Never before has the structure of U.S. household wealth been so significantly skewed towards equity assets.
