Household net worth fell in the March 2022 quarter by $42.3 billion, or 1.7 percent, Stats NZ said today.
This is the largest quarterly decrease in household net worth since the fall of 0.3 percent in the June 2019 quarter.
Net worth is the value of all assets owned by households less the value of all their liabilities, or what they owe.
The value of total household assets fell $38.2 billion while liabilities rose $4.1 billion, both contributing to the overall decrease in net worth.
Households have both financial and non-financial assets. For the household sector, non-financial assets are mostly a mix of residential buildings and land, making up around 45 percent of total assets. Combined non-financial assets fell $30.6 billion in the March 2022 quarter following an increase of $76.1 billion in the December 2021 quarter. The fall in the value of non-financial assets represents a decrease of 2.3 percent this quarter after a sustained period of strong growth. These property valuations include owner-occupied properties only.
| Quarter | Net worth | Non-financial assets | Financial assets |
| Jun-16 | 1.44457E+12 | 7.27467E+11 | 9.04827E+11 |
| Sep-16 | 1.49893E+12 | 7.56255E+11 | 9.34229E+11 |
| Dec-16 | 1.52529E+12 | 7.64765E+11 | 9.5559E+11 |
| Mar-17 | 1.53523E+12 | 7.72537E+11 | 9.61488E+11 |
| Jun-17 | 1.57599E+12 | 7.84843E+11 | 9.93025E+11 |
| Sep-17 | 1.60821E+12 | 7.93126E+11 | 1.01943E+12 |
| Dec-17 | 1.64329E+12 | 8.02422E+11 | 1.04869E+12 |
| Mar-18 | 1.66247E+12 | 8.10404E+11 | 1.06345E+12 |
| Jun-18 | 1.67046E+12 | 8.14917E+11 | 1.07045E+12 |
| Sep-18 | 1.70629E+12 | 8.27268E+11 | 1.09694E+12 |
| Dec-18 | 1.71453E+12 | 8.43405E+11 | 1.09286E+12 |
| Mar-19 | 1.74297E+12 | 8.52012E+11 | 1.11627E+12 |
| Jun-19 | 1.73722E+12 | 8.54234E+11 | 1.11206E+12 |
| Sep-19 | 1.76568E+12 | 8.73233E+11 | 1.1248E+12 |
| Dec-19 | 1.80723E+12 | 8.97593E+11 | 1.14598E+12 |
| Mar-20 | 1.83093E+12 | 9.28365E+11 | 1.14197E+12 |
| Jun-20 | 1.85996E+12 | 9.29981E+11 | 1.16977E+12 |
| Sep-20 | 1.92459E+12 | 9.70857E+11 | 1.19753E+12 |
| Dec-20 | 2.04664E+12 | 1.05018E+12 | 1.24641E+12 |
| Mar-21 | 2.19462E+12 | 1.14614E+12 | 1.30431E+12 |
| Jun-21 | 2.27261E+12 | 1.20625E+12 | 1.32916E+12 |
| Sep-21 | 2.3562E+12 | 1.26117E+12 | 1.36255E+12 |
| Dec-21 | 2.46338E+12 | 1.33724E+12 | 1.3988E+12 |
| Mar-22 | 2.42108E+12 | 1.30665E+12 | 1.39114E+12 |
Household financial assets also fell during the quarter, down $7.7 billion. Equity and investment fund shares led the fall, down $6.8 billion. This asset class includes shares held in listed companies, investment fund shares, and equity in unincorporated New Zealand businesses. The latter includes the ownership of rental properties as equity, that is, the value of the properties less the mortgages held.
Households also experienced a $3.5 billion fall in the value of their insurance and pension assets in the March 2022 quarter. Partly offsetting falls in household financial assets was an increase in currency and deposits (such as term deposits), up $2.6 billion. This is the only financial asset class to record an increase from the previous quarter.
Household financial liabilities like housing loans, consumer loans (credit card debt), and student loans grew 1.5 percent, continuing a relatively steady increase in recent quarters.
