Leave a Message

Thank you for your message. We will be in touch with you shortly.

How Much Home Equity Have You Gained? The Answer Might Surprise You

Mike Doyle January 13, 2025



Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner? As home values rise, so does your net worth. And, if you’ve been in your house for a few years (or longer), there’s a good chance you’re sitting on a pile of equity — maybe even more than you realize.

What Is Home Equity?

Home equity is the difference between what your house is worth and what you owe on your mortgage. For example, if your house is worth $500,000 and you still owe $200,000 on your home loan, you have $300,000 in equity. It’s essentially the wealth you’ve built through homeownership. Right now, homeowners across the country are seeing record amounts 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 rise in home equity over the years can be credited to two key factors:

1. Significant Home Price Growth

Home prices have climbed dramatically in recent years. In fact, according to the Federal Housing Finance Agency (FHFA), over the past five years, home prices nationwide have risen by 57.4% (see map below):

a map of the united statesThis appreciation means your house is likely worth much more now than when you first bought it.

2. Longer Tenure in Homes

Data from the National Association of Realtors (NAR) shows people are staying in their homes for a decade (see graph below):

a graph of numbers and a number of peopleThis increased tenure means homeowners benefit even more from home values growing over time. That’s because the longer someone has lived in their house, the more that home’s value has grown, which directly increases equity.

And if you’re one of those people who’s been in their home for 10 years or more, know this – according to NAR:

“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”

The Benefits of Having Home Equity

What does that mean for you? It means your house might be your biggest financial asset — and it could open up some exciting opportunities for your future. Let’s break it down.

  • Moving to Your Next Home

Your equity could help you cover the down payment for your next home. In some cases, it might even mean you can buy your next house all cash.

  • Financing Home Improvements

Thinking about upgrading your kitchen, adding a home office, or tackling other projects? Your equity can provide the funds to make those improvements happen, increasing your home’s value and making it more enjoyable to live in too.

  • Getting a Business Going

If you’ve been dreaming about starting your own business, your equity could be the kickstart you need. Whether it’s for startup costs, equipment, or marketing, leveraging your home’s value can help bring your entrepreneurial goals to life.

Bottom Line

Whether you’re thinking about selling, upgrading, or simply want to understand your options, your home equity is a powerful resource. If you’re wondering how much equity you’ve built or how you can use it to meet your goals, let’s connect and explore the possibilities.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Your 5-Step Checklist for Inherited Property in California

Inheriting real estate can feel overwhelming. This checklist is designed to help you understand your options, ask the right questions, and make confident decisions.

Is It Better To Buy Now or Wait for Lower Mortgage Rates? Here’s the Tradeoff

Mortgage rates are still a hot topic – and for good reason. After the most recent jobs report came out weaker than expected, the bond market reacted almost instantly.

Online Home-Buying Search Terms Recently Hit 2-Year High

Believe it or not, there are clear signs buyer interest is heating up again.

Real Estate

Home Design Trends in Irvine, CA

Discover the Latest Styles and Innovations in Irvine's Home Design Scene

Real Estate

Home Design Trends in Irvine, CA

Exploring the Latest Innovations and Styles in Irvine's Home Design Scene

The Data Says the Market is Shifting—Here’s How Investors Should Be Adjusting

If you’ve been sitting on the sidelines, waiting for the right time to invest in real estate again, this is your signal: The buyer’s market has arrived.

The “Golden Age” of Real Estate is Over

The so-called “golden age” of real estate investing—the era of low prices, rock-bottom interest rates, and sky-high cash flow—is behind us.

Housing Market Forecasts for the Rest of 2025

If you’ve been watching the market, you’ve likely noticed a few changes already this year. But what’s next? From home prices to mortgage rates, here’s what the latest … Read more

New Changes to an Environmental Law Could Create a Real Estate Boom in California

Housing developers may have thrown their hard hats into the air to celebrate the news that California Governor Gavin Newsom is reforming the California Environmental Q… Read more

Let's Connect

For expert real estate services, reach out to Mike Doyle. Whether you're buying, selling, or renting, navigate the process with confidence. Contact him today to ensure a smooth and informed real estate journey.