Median household income grows 6.2% in Q4 of 2013

Income of household in private housing stagnates.

According to UBS, median household income increased 6.2%y/y in 4Q13.

Household in different housing tenure nevertheless fared differently.

Here’s more from UBS:

While households in public rental housing and subsidized sale flats saw income improved, reflecting the increase in statutory minimum wage (SMW) in May 13 and strong demand for lower skilled workers, household in private housing saw income stagnated.

Income growth is a key driver of consumption, whereas household debt levels provide clues about the capacity to borrow to smooth consumption during downturns or exposure to stress if debt is excessive.

A slightly stronger economy should lift median household income growth a bit this year.

Similar to last year, the lower income household will likely benefit more than the higher income household does.