US Household Wealth Reaches $175T as Commercial Real Estate Stays 30% Below Peak

• US household wealth reached $175 trillion in 2025, helping lift global household wealth to a record $570 trillion
• Equities accounted for 57% of the annual increase in global household wealth, while real estate contributed 15%, according to McKinsey
• US commercial real estate prices remain 30% below their peak, although previous downturns were followed by recoveries of 107% and 79% over the following decade

US household wealth has not looked stronger on paper. The figure climbed to $175 trillion in 2025. It was pushing a years-long rise in asset values and putting American households well ahead of every other major economy. Despite this, another factor has caught the attention of the market. US commercial real estate prices remain about 30% below their peak. This has created a sharp divide between booming financial assets and lagging property values.

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US Household Wealth Reaches $175T as Global Wealth Hits Record High

Global household wealth rose to a record $570 trillion in 2025, according to the McKinsey Global Institute. The US accounts for $175 trillion, more than twice China’s estimated $75 trillion. The report estimates that global household wealth has grown 338% since 2000, reaching nearly 380% of global GDP.

Equities did much of the heavy lifting. McKinsey found that stocks contributed 57% of the annual increase in global wealth. Meanwhile, real estate accounted for 15%. Bonds and other financial assets made up the rest.

The figures show how strongly financial markets have influenced household balance sheets in recent years. In the US, rising equity valuations have helped offset higher borrowing costs and economic uncertainty. This allowed household wealth to continue expanding even as other asset classes have struggled.

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Why US Commercial Real Estate Remains 30% Below Its Peak

Commercial property has been one of the notable exceptions. Recent data shows US commercial real estate prices remain about 30% below their previous peak. This comes even after several years of stabilization. Office buildings have been hit particularly hard as remote and hybrid work continue to reshape demand. Meanwhile, higher interest rates have made financing and refinancing more expensive for property owners.

According to Topdown Charts, earlier downturns in commercial real estate were followed by recoveries of 107% and 79% over the following decade.

Whether history repeats itself remains uncertain. Lower borrowing costs could help revive demand, but investors are still watching vacancy rates, refinancing risks and workplace trends for signs that the sector has finally found a floor.

For now, the latest wealth figures paint a split picture of the US economy. Household wealth is sitting at record levels, yet one of the country’s largest asset classes is still working its way back from a prolonged downturn.

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