Average household better off

The record annual increase comes on the back of the property boom, but borrowing is also up to record levels - and that's brought a warning.

Westpac Chief Economist Brendon O'Donovan says house prices have gone up and household net worth has gone through the roof.

The Westpac/NZIER survey shows household wealth rose by a record $12 billion over the past three months to hit $257 billion for the year. That breaks down to $184,000 per household - an increase of $25,000.

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