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 probably 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, pushing prices up. This rise in prices has directly translated into increasing 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 last year alone.

That's the national average, so if you want to see what's happening in your state, check out the map below. It uses data from CoreLogic to show how much equity has grown in each state over the past year. You’ll notice that every single state with sufficient data saw 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 increased by 37.5% from May 2019 to May 2024, meaning your home's value has likely risen significantly. Ralph McLaughlin, Senior Economist at Realtor.com, says:

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

To provide context on how much equity can accumulate 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 the dramatic price increases over the past few years and the ongoing price growth today, homeowners have clearly built up substantial equity—and that has some serious benefits.

You could use this equity to start a business, fund an education, or even help you afford your next home. When you sell, the equity you’ve accumulated comes back to you and may be enough to 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 gained can be a significant advantage. Curious about how much equity you have and how you can use it to help pay for your next home? Let's connect.