If you own a home, your net worth has probably increased significantly over the past year. Home prices have been rising, meaning you’re building equity faster than you might realize.
Equity is the current value of your home minus what you owe on your mortgage. Increased demand and limited supply over the past year have driven prices higher, translating directly into more equity for homeowners.
How Much Equity Have You Earned in the Past 12 Months?
According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $28,000 over the last year alone.
The map below shows state-level equity growth using CoreLogic data. Every state with sufficient data saw annual equity gains:
What If You Bought Your House Before the Pandemic?
If your home was purchased before the pandemic, the equity gains are even more impressive. Data from Realtor.com shows home prices rose 37.5% from May 2019 to May 2024.
Ralph McLaughlin, Senior Economist at Realtor.com, says:
“Homeowners have seen extraordinary gains in home equity over the past five years.”
Selma Hepp, Chief Economist at CoreLogic, adds context to today’s typical homeowner equity:
“With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner.”
How Your Rising Home Equity Can Help You
Rising equity provides financial flexibility. You could use it to:
- Start a business
- Fund an education
- Help purchase your next home
When you sell, the equity you’ve built can cover a significant portion — or even all — of your next home’s down payment.
Bottom Line
If you’re planning to move, the equity you’ve accumulated can be a powerful resource. Connect with a local real estate agent to learn how to use it toward your next home.
