Are you part of the richest 50% in France? INSEE has revealed the average wealth of French people: it is made up of 62% real estate.
In 2021, half of French households have gross assets greater than 177,200 euros. This statistic, from the study by the National Institute of Statistics and Economic Studies (Insee), is up 6.7% compared to 2018, demonstrating a significant change in average wealth in the country. This means that if your assets are greater than 177,200 euros then you are part of the richest half of French people.
Real estate represents the majority of French people’s assets, constituting 62% of the total. The main residence is the cornerstone of this real estate wealth, representing 83% of total real estate assets. Real estate ownership creates a significant gap between owners and tenants, with the former possessing gross assets 8.6 times greater than that of the latter.
Financial assets come next, representing 21% of gross assets. Here again, the disparity is notable: the least well-off households are often limited to current accounts and savings accounts, while the wealthiest diversify their financial assets. The poorest 10% in financial assets have a maximum of 400 euros, compared to at least 150,000 euros for the richest 10%.
Professional wealth, which constitutes 11% of total wealth, is mainly held by individuals between 30 and 59 years old, and plays a crucial role in certain professions such as agriculture or commerce. The rest, or 6% of assets, is made up of residual assets such as cars, household equipment, and jewelry. These residual assets represent a larger share of the wealth of low-income households.
The richest 5% of households own 34% of total wealth, and the richest 1% own 15% of total wealth. This inequality is also manifested in the nature of the assets held. Professional wealth is particularly concentrated: 95% of it is held by the richest 5%, and 66% by the 1% at the top of the economic ladder.
The average gross household wealth increases with age, reaching its peak among those aged 50-59 with 401,300 euros on average. After age 60, the average net worth is the highest (361,400 euros), but begins to decrease among seniors.
This INSEE study highlights the importance of real estate and professional investments in building wealth, while highlighting the inequalities between the different segments of the population. Ultimately, it provides crucial insight into the state of wealth in France and its implications for society as a whole.