Homeowners Gained $28K in Equity over the Past Year

Homeowners Gained $28K in Equity over the Past Year

If you own a home, your net worth has likely increased significantly over the past year. Home prices have been rising, which means you're building equity much faster than you might think. Here’s how it works.

Equity is the current value of your home minus what you owe on the loan.

Over the past year, the demand for homes has continued to outpace the supply, driving prices up. This increase in home prices has directly translated into growing equity for homeowners.

How Much Equity Have You Earned over the Past 12 Months?

According to the latest Homeowner Equity Insights from CoreLogic, the average homeowner's equity has grown by $28,000 in the past year alone.

That's the national average, so if you're curious about the specifics in your state, take a look at the map below. Using data from CoreLogic, the map illustrates the growth of equity in each state over the past year. You'll notice that every state with sufficient data has experienced annual equity gains:

What If You Bought Your House Before the Pandemic?

If you bought your house before the pandemic, the equity news is even better. According to data from Realtor.com, home prices shot up by 37.5% from May 2019 to May 2024, meaning your home's value has likely increased significantly. Ralph McLaughlin, Senior Economist at Realtor.com, says:

“Homeowners have seen extraordinary gains in home equity over the past five years.”

To give context to how much equity can stack up over time, Selma Hepp, Chief Economist at CoreLogic, explains the total equity the typical homeowner has today:

“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

With how prices skyrocketed a few years ago and the ongoing price growth today, homeowners have clearly built up substantial equity – and that brings serious benefits.

You could use this equity to start a business, fund an education, or help afford your next home. When you sell, the equity you've accumulated comes back to you, potentially covering a significant part – or even all – of your next home’s down payment.

Bottom Line

If you're planning to move, the equity you've gained can be a significant asset. Curious about how much equity you have and how you can use it to help pay for your next home? Let's connect.