Oregon’s Top 1% Take 58% of Capital Gains as U.S. Household Wealth Jumps Record $12.8 Trillion

Inequality continues unabated in Oregon, yet according to the Federal Reserve, US household wealth rose by a record $12.8 trillion in the second quarter, reaching $195.9 trillion.

Record Increase in US Household Wealth

The value of equities directly and indirectly held by households increased by $10.7 trillion during the second quarter, while real estate values rose by $1.1 trillion. Deposits, meanwhile, declined by $100 billion.

The recently announced increase has pushed the ratio of household net worth to disposable personal income to 8.28- the highest level on record, surpassing the previous peak in early 2022.

Much of the increase came from increased asset values, rather than new savings. Stocks and bonds, according to the Federal Reserve, are the main drivers of changes in household wealth. Because ownership of those assets is concentrated among higher-income households, increases in asset prices don’t affect all Americans equally.

Oregon’s Wealth Divide

Oregon’s income inequality sharply illustrates the divide between higher- and lower-income households. Research from the Oregon Center for Public Policy (OCPP) found that capital gains and other income generated by wealth are still major drivers of the state’s income inequality.

In 2023, about 58% of all capital gains reported in Oregon went to the state’s top 1% of earners. A further 20% went to the rest of the top 5%, leaving the bottom 95% to share the leftover 22%.

The gap is even more obvious when individual amounts are compared. In 2023:

• About 58% of all capital gains reported in Oregon went to the state’s top 1% of earners.
• A further 20% went to the rest of the top 5%.
• The bottom 95% shared the leftover 22%.
• The average member of Oregon’s top 0.1% received about $1.5 million in capital gains, $484,000 in dividends and $220,000 in interest income.
• The median Oregonian’s reported income from the same sources was about $300 in capital gains, $600 in dividends and $500 in interest.

The numbers back up the lived experience. National wealth does not necessarily translate into greater financial security for everyone.

For households with substantial investments and property, rising asset values can create additional wealth. But for those without significant assets, the same economic conditions often bring far fewer opportunities to build financial security.