StratoDem Analytics last week released its final estimate for the 2016 median household net worth at $100,000. The latest release from the Federal Reserve Survey of Consumer Finances pegged median household net worth at $97,300, demonstrating how StratoDem Analytics helps clients know where the market is before the official data is released.
As we noted on September 15, we expected the most reliable household net worth data to show 2016 median household wealth within a few percentage points of $100,000. Today, the Federal Reserve released its 2016 Survey of Consumer Finances, the only reliable national source of household net worth data. The Fed estimates that median household wealth was $97,300 in 2016, or 2.7% lower than the StratoDem Analytics estimates. While we released the data publicly on September 15, StratoDem Analytics clients have been using the household net worth data for months.
StratoDem Analytics creates strategic advantages for clients when delivering dramatically more accurate, timely data releases than other third party data repackagers. Some of the leading third-party providers of local-market economic and demographic data attempt to estimate household net worth, but they miss by a mile. Given the variability of the economic environment and housing market on a national and local level, some of those third-party data providers have average error rates of 30–40%. From today’s release, we now know that the StratoDem Analytics engine is 10 to 20 times more accurate on household net worth than some of the leading data repackagers providing estimates of household net worth.