(Bloomberg) — U.S. household net worth surged to a fresh record in the second quarter as Americans enjoyed an ebullient stock market and the largest-ever increase in the value of their real estate holdings.

Federal Reserve reports that the household’s net worth increased 4.3% or $5.8 trillion to $141.7 trillion over the second quarter. There was a $3.5 billion increase in the equity market and a $1.2 Trillion improvement in households’ real estate holdings.

Stocks rose to new heights. Low borrowing costs supported an increase in home ownership and ultimately, home prices have appreciated. The figures highlight how the massive support provided by the government and the Fed has bolstered Americans’ wealth. 

Equity shares as a percent of total household assets rose in the second quarter to almost 29.5%, up from 25.6% in 2019, the Fed’s report showed.

However, not all are benefiting from these wealth gains. The stock market is not a popular investment option for many Americans. Renters are also less likely to own a house due to the steep rise in home prices.

After a surge of $4.8 trillion in the previous quarter, net private savings increased at almost $2.9 trillion annually in the second quarter. This is a result of federal stimulus. Consumer spending has been driven by excess savings, especially in the last quarter when consumer expenditures rose at one of their fastest rates ever recorded. 

Debt Increases

Business debt outstanding increased by $63.2 billion from the prior quarter, or at an 1.4% annualized rate, in the April to June period to a total of nearly $18 trillion.

The federal debt increased by $578.8billion, an average 9.6% annually, to $24.7 trillion. The government’s debt increased during the pandemic as policymakers intervened to reduce the financial impact of the crisis. They provided trillions of dollars in support and assistance for people and companies. 

Without congressional approval, the government could default on its financial obligations.

In the second quarter, consumer credit not including mortgage debt increased by $91.2 million.

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