Discover How Much Home Equity You've Built—The Results May Surprise You!

Have you ever considered how much wealth you've built simply by owning your home? As home values continue to climb, so does your net worth. If you’ve lived in your house for a few years—or longer—you may be sitting on a substantial amount of equity, possibly more than you realize.

What Is Home Equity?

Home equity is the difference between your home's current value and the remaining balance on your mortgage. For example, if your home is worth $500,000 and you owe $200,000, your equity is $300,000. It represents the wealth you’ve accumulated through homeownership. Right now, homeowners across the country are experiencing record-high levels of equity.

According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity.

Why Have Homeowners Gained So Much Equity?

The surge in home equity can be attributed to two primary factors:

1. Significant Home Price Growth

Home prices have increased substantially in recent years. According to the Federal Housing Finance Agency (FHFA), home prices nationwide have risen by an impressive 57.4% over the past five years (see map below).

This increase in home values means your house is likely worth significantly more now than when you initially purchased it.

2. Longer Time Spent in Homes

According to data from the National Association of Realtors (NAR), homeowners are staying in their homes for an average of 10 years (see graph below):

This extended tenure means homeowners benefit even more from rising home values over time. The longer someone has lived in their home, the more its value has likely appreciated, directly boosting their equity.

If you’ve been in your home for 10 years or more, consider this insight from the National Association of Realtors (NAR):

"Over the past decade, the typical homeowner has gained $201,600 in wealth solely from price appreciation."

The Benefits of Home Equity

What does this mean for you? Your home might be your greatest financial asset, offering opportunities to shape your future. Let’s explore some possibilities:

• Moving to Your Next Home

Your equity can serve as a significant resource for your next chapter, potentially covering your down payment. In some cases, it might even allow you to purchase your next home outright with cash.

• Financing Home Improvements

Dreaming of a kitchen remodel, a home office, or other upgrades? Your equity can fund these projects, increasing your home’s value and enhancing your quality of life.

• Launching a Business

If starting your own business is on your mind, your home equity could be the key to unlocking your entrepreneurial ambitions. Whether it’s for startup costs, equipment, or marketing, leveraging your equity can help turn your vision into reality.

Bottom Line

Whether you’re considering selling your home, upgrading to a new one, or simply exploring your financial options, your home equity is an incredibly valuable resource. It can help you achieve your goals, whether that’s moving into your dream home, funding important home improvements, or even supporting other ventures like starting a business.

If you’re curious about how much equity you’ve built up over the years or how you can leverage it to meet your personal and financial objectives, reaching out to a local real estate agent is a smart first step. They can provide you with insights into your home’s current value, guide you through your options, and help you make informed decisions about your next move. Take the time to explore the possibilities — your equity could unlock opportunities you never thought possible.