Savings up but net wealth falling as total household wealth plunges by almost $90 billion

A housing market downturn shoulders most of the blame for falling net household wealth, Stats NZ said today. Photo / Michael Cunningham

A housing market meltdown, flatlining KiwiSaver performances and mediocre share markets have sent household net wealth plummeting.

Total household net wealth fell $88.9 billion during the June 2022 quarter, Stats NZ said today.

But savings were up, with households increase the level of their currency and deposits by $3.2b in the June quarter.

The 3.7 per cent decline in overall net wealth was more than twice the $40.1b shaved off household net wealth in the previous quarter.

Falling share markets also influenced the overall drop, Stats NZ said.

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But more than half the $88.9b plunge was due to falling property values for owner-occupied property.

"The falls reverse some of the gains made during 2021 when household net worth increased $427.6b," Paul Pascoe of Stats NZ said this morning.

"Household net worth dropped $129b, 5.2 per cent, during the first half of 2022 as property values and share markets fell," Pascoe added.

Despite the last two quarters' falls, household net worth of $2.347 trillion was still higher than the level at December 2020 of $2.048t.

Stats NZ defined net worth as the value of all assets households owned, less the value of all their liabilities.