Homeowner Net Worth Has Skyrocketed

If you own a home, your net worth has likely gotten a big boost. That’s because homeowners have seen their home equity grow significantly over the years. ATTOM reports that nearly half (49%) of all mortgaged homes in the U.S. had at least 50% equity in Q3 2023.

If you’re a homeowner with questions about how much equity you have and what you can do with it, here’s what you need to know.

The Increase in Home Equity Over the Years

Equity is the difference between what you owe on your home and its market value. Your equity grows as you pay down your mortgage and as your home’s value increases. Over the past few years especially, rising home prices have given homeowner equity a big boost.

Data from ATTOM shows how home equity has increased since 2020 (see graph below):

The graph shows the percent of homes with more than 50% equity has increased significantly since 2020. This is largely thanks to rising home prices over the past few years – especially in 2021 and 2022 when they soared dramatically.

What That Means for You as a Homeowner

So, what does that mean for you? If you’re already a homeowner, you likely have a lot more equity in your home than you might realize, and you can use that equity toward your goals. As Selma Hepp, Chief Economist at CoreLogic, explains:

“Higher home prices have helped homeowners across the US continue to build wealth through home equity . . . on average, U.S. homeowners have about $300,000 in equity.“

For the average homeowner, that’s a massive amount of wealth to leverage. For example, if you’re looking to move to a home that better fits your needs, you could put that equity toward your next home purchase.

And if you’re on the fence about selling, that equity may be just the nudge you need. As the National Association of Realtors (NAR) notes, a primary reason people are selling their homes is to move closer to loved ones, or because they want to downsize.

Bottom Line

If you want to know how much equity you have in your home and how you can use it, connect with a local real estate agent.