New data shows household net worth increases on back of rising asset values

Rising asset values resulted in a 5.5 percent increase in household net worth in the March 2021 quarter compared with December 2020, Stats NZ said today.

“Rising asset prices, including property prices, have meant that the total net worth of New Zealand households has increased strongly in recent quarters,” national accounts senior manager Paul Pascoe said.

Net worth is the value of all assets owned by households less the value of all their liabilities. At 31 March 2021, the net worth of New Zealand households was $2.3 trillion. This was $118 billion, or 5.5 percent, higher than at 31 December 2020.

Household net worth increased $402 billion over the year from March 2020 to March 2021. This amount was almost the same as the growth over the previous four years from June 2016 to March 2020 ($419 billion).

While household loan debt has increased $16 billion from March 2020, the value of household assets has risen $417 billion.

QuarterChange in net worth
Jun-16
Sep-1649909000000
Dec-1634399000000
Mar-178796000000
Jun-1732080000000
Sep-1732387000000
Dec-1731374000000
Mar-1831027000000
Jun-18-2655000000
Sep-1836828000000
Dec-1815631000000
Mar-197721000000
Jun-19-1452000000
Sep-1940457000000
Dec-1955119000000
Mar-2047160000000
Jun-2022142000000
Sep-2091155000000
Dec-201.69957E+11
Mar-211.18284E+11
QuarterNet worth
Jun-161444153000000
Sep-161494062000000
Dec-161528461000000
Mar-171537257000000
Jun-171569337000000
Sep-171601724000000
Dec-171633098000000
Mar-181664125000000
Jun-181661470000000
Sep-181698298000000
Dec-181713929000000
Mar-191721650000000
Jun-191720198000000
Sep-191760655000000
Dec-191815774000000
Mar-201862934000000
Jun-201885076000000
Sep-201976231000000
Dec-202146188000000
Mar-212264472000000

The rising value of household owner-occupied property contributed $172 billion of the rise in household assets since March last year.

Financial assets, which include shares, businesses, equity in rental properties, bank deposits, and retirement savings owned by households, contributed $245 billion to the increase in household assets since March last year, exceeding the rise from owner-occupied property.

When combining rental properties (included in these accounts as a financial asset) with owner-occupied property, the increases in the values of residential property accounted for about 54 percent of the household asset increase for the March 2021 year.

See also:

Note, the quarterly Balance Sheets series are not seasonally adjusted.

/Stats NZ Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.