A Hamilton Project analysis on how household balance sheets have evolved since the onset of the COVID-19 pandemic finds that, in aggregate, households’ financial positions in 2022 are remarkedly improved relative to 2019.
The improvements to household finances stand in stark contrast to the years following the Great Recession. This is a testament to the support households received through robust federal benefits, to the strength of the housing and stock markets, and in more recent months, to the recovery of labor-market income. Despite the overall strength of aggregate households’ financial positions, significant challenges remain due to rising inflation and long-standing inequities.
