EMBARGOED UNTIL: SEPT. 25, 1995 (MONDAY) Public Information Office CB95-167 301-457-3030 301-457-4067 (TDD) T.J. Eller 301-763-8578 MEDIAN VALUE OF INTEREST-EARNING ASSETS DOWN AND HOME EQUITY UP IN 1993 COMPARED WITH 1991 EMBARGOED UNTIL: SEPT. 25, 1995 (MONDAY). The median value of interest-earning assets declined between 1991 and 1993 while median home equity was increasing, the Commerce Department's Census Bureau reported today. Interest-earning assets at financial institutions--savings accounts, interest-earning checking accounts, money market deposit accounts, and certificates of deposit--fell as a share of measured net worth, from 14 percent in 1991 to 11 percent in 1993, the Census Bureau said. The median amount of these deposits decreased from $3,709 in 1991 (in constant 1993 dollars) to $2,999 in 1993. Meanwhile, median home equity increased from $43,070 in 1991 (1993 dollars) to $46,669 in 1993. Home equity remained the largest share of a household's measured net worth at about 44 percent. The findings are in a report titled "Asset Ownership of Households: 1993" (P70-47). Based on data collected in the 1993 Survey of Income and Program Participation, the report looks at the value of interest-earning assets, stocks and mutual fund shares, real estate, mortgages held by sellers, and motor vehicles, as well as the self-reported value of self-owned businesses or professions, held by households in the United States. It does not cover equities in pension plans, cash surrender value of life insurance policies, or the value of jewelry and home furnishings. The report says the median measured net worth for households in 1993 of $37,587 was "not significantly different" from the 1991 median of $38,500 (in 1993 dollars). Measured net worth is defined as the sum of measured assets less measured liabilities, such as debts secured by assets, credit card or store bills, bank loans, and other unsecured debts. Other interest-earning assets, such as money-market funds and municipal bonds, made up 4 percent of measured net worth in 1993, a slight decrease from 5 percent in 1991. The median value of holdings in other interest-earning assets decreased from $16,058 in 1991 (1993 dollars) to $12,998 in 1993. The median values of rental property, vehicles, and self- owned businesses or professions decreased; stocks and mutual fund shares and U.S. savings bonds increased; and holdings in non- interest-earning checking accounts, other real estate, IRA and KEOGH accounts, and other financial investments did not change. Other findings: - If home equity is excluded, median total net worth fell from $10,858 in 1991 (in 1993 dollars) to $9,505 in 1993. The decline applied in all householder age categories, except for those 34 or younger, 55 to 64, and 70 to 74 years old. - In both 1991 and 1993, the most prevalent interest- earning asset at a financial institution was a savings account, but ownership of savings accounts dropped from 62 percent of households in 1991 to 60 percent in 1993. - Married-couple households had the largest median net worth: $61,905 in 1993. Both male and female- maintained households had a median measured net worth about one-fifth that of married-couple households in 1993. - Median net worth increased with the age of the householder, from $5,786 for the youngest households to $91,481 for households with householders in the 55-to-64-year-old category, and then fell to $77,654 for the oldest group (75 years and over). - In 1993, households with White householders had median net worth of $45,470. The median net worth of households with African American householders was $4,418 and that of households with Hispanic-origin householders was $4,656. No significant difference existed between the latter two figures. As in all surveys, the data in the report are subject to sampling variability and other sources of error. In addition, asset accumulation tends to be under-reported in household surveys. -X- EMBARGOED UNTIL: SEPT. 25, 1995 (MONDAY) Editor's note: media representatives may request a copy of the report from the bureau's Public Information Office by telephone: 301-457-3030; fax: 301-457-3670; or e-mail: pio@census.gov. Non-media orders should be directed to the bureau's FastFax: 1-900-555-2FAX (there is a nominal fee); Customer Services Branch on 301-763-INFO(4636) or fax 301-457-3842.