144,983 dollars (almost 128,000 euros, at the average exchange rate of 2021), was last year, the median wealth of adults in France, evaluated by Credit Suisse in its annual Global Wealth Report published this Tuesday. This therefore means that half of them have more and the other half have less. If we take the average wealth (the total wealth divided by the number of adults), the sum is much higher since it exceeds 322,000 dollars (285,000 euros in 2021). This difference is explained by the weight of very large fortunes that pull the average upwards.
A median wealth rose sharply by 9% over a year. In 2020, Credit Suisse estimated the median wealth of French people at $132,959, or $12,000 less than last year.
What is the heritage of the French composed of? Unlike some of our neighbors, like the British or the Swiss, for example, it is the value of non-financial assets (mainly real estate) that accounts for the majority of our wealth. They represent 60% of our wealth compared to 40% of financial assets. If the latter tend to increase in relative terms in our wealth after falling to 35% in 2007, they remain below their 2000 level when they represented 46.2% of gross wealth. But in the meantime, the increase in real estate prices has reduced its weight.
A Frenchman 2.3 times “richer” than a German
With nearly $145,000 in assets, where does the “average Frenchman” rank compared to others in the world’s major economies? It is surprisingly very tall. Much more than countries with more dynamic economies and lower unemployment rates. The median wealth of the British is, for example, $140,299 according to Credit Suisse. In Japan 134,919 dollars, in Italy 117,224 dollars, in Spain 107,090 dollars and even only 93,271 dollars in the United States and 61,741 dollars in Germany.
Therefore, an average Frenchman is almost 1.5 times richer than an American and 2.3 times richer than a German.
How to explain these surprising data? First, because wealth is better distributed in France, the Credit Suisse report points out. In France, the wealth held by the richest 1% represents 22.3% of total wealth, compared to 31.7% in Germany or 35.1% in the United States. The most unequal countries are India (40.6%), Brazil (49.3%) and Russia (58.6%).
Median wealth (which does not take distribution into account) is also much more favorable in the United States ($579,050) than in France ($322,070). This means that very large (relatively numerous) fortunes raise average wealth. While globally, one in two Americans owns less than $93,271.
More French Owners
If the wealth distribution effect plays with Germany, it does not explain the significant gap. The average German wealth (not just median) is still lower than the French at $257,000, or $65,000 less than the French. This has been a constant for several decades. A 2013 study by the Bundesbank already revealed that German households were less “rich” than French ones. This had caused a lot of ink to flow across the Rhine. Newspapers questioning the accuracy of the study.
And yet, year after year, the Credit Suisse Wealth Report confirms this wealth gap between neighbors across the Rhine. It all boils down to one explanation: real estate. If Germany has caught up with France for a decade, prices remain even more affordable across the Rhine than at home. According to the real estate group Liberkeys, the average price of a sqm apartment is 4,008 euros in France compared to 2,959 euros in Germany. Between owning 60 m² in France makes you “richer” than the same property in Germany. Even if it is still partly virtual.
The other element is the proportion of owners in the population. According to data Eurostat, 63.6% of French households owned their home in 2020 compared to 50.5% of German households. Therefore, the difference in wealth between Germans and French is largely due to the level of property prices.
Source: BFM TV
