American families' median net worth "fell dramatically" between 2007 and 2010, plummeting nearly 40 percent to levels last seen in the early 1990s, according to the Federal Reserve.
Median net worth dropped from $126,400 in 2007 to $77,300 in 2010. Overall, median net worth fell 38.8 percent and the mean fell 14.7 percent.
The drop in net worth largely stemmed from the housing crisis, the Fed said in its Survey of Consumer Finances: "Although declines in the values of financial assets or business were important factors for some families, the decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices."
The Fed pointed out that between 2007 and 2010, median net worth "fell dramatically for families living in all regions of the country, but especially for those living in the West — a 55.3 percent decline. This pattern reflects the effect of the collapse of housing values in several parts of the West region. Median wealth in every other region fell 28.2 percent or more."
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