Let’s talk about something you probably don’t check as often as your bank account—your home’s value. It might not be top of mind, but it plays a major role in your overall financial picture.
When was the last time a professional gave you an updated look at what your home is actually worth?
Think about it—your home is likely your largest asset. And if you’ve owned it for a few years or more, there’s a good chance it’s been quietly gaining value without you even realizing it. The truth is, you might be pleasantly surprised by how much equity you’ve built.
What Is Home Equity?
There may be more wealth in your home than you realize—and it’s called home equity.Home equity is the difference between what your home is worth and what you still owe on your mortgage. It grows over time as your home’s value increases and as you make your monthly mortgage payments.
Here’s a simple example:
If your home is worth $500,000 and you still owe $200,000 on your mortgage, that means you have $300,000 in equity. That’s real, tangible wealth.
And you’re not alone.
According to Cotality (formerly CoreLogic), the average homeowner with a mortgage is currently sitting on about $311,000 in equity. That’s a powerful financial resource—and it’s worth understanding what it could mean for you.
Why You Probably Have More Than You Think
There are two major reasons why homeowners like you are seeing record-high levels of equity right now:
1. Significant Home Price Growth
According to the Federal Housing Finance Agency (FHFA), home prices have risen by over 57% nationwide in the past five years (see map below):
If you bought your home a few years ago—or even earlier—it’s likely worth much more today than when you first purchased it, simply because of how much the market has appreciated in recent years.
2. Homeowners Are Staying in Their Homes Longer
According to the National Association of Realtors (NAR), the average homeowner now stays in their home for around 10 years—much longer than in the past (see graph below):
Over that time, just by consistently making mortgage payments and benefiting from rising home values, many homeowners have built substantial equity—often without even realizing it.
If you’ve been in your home for a decade or more, the growth in value behind the scenes may have significantly boosted your wealth. As NAR explains:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What Could You Actually Do with That Equity?
Remember, your home is likely one of your greatest financial assets—and if you use your equity wisely, it can open the door to some exciting possibilities for your future.
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Upgrade to your next home.
Your equity could help fund the down payment on a new home—and in some cases, it might even allow you to purchase your next property with all cash. -
Renovate your current space.
If your home no longer fits your lifestyle, tapping into your equity could allow you to make meaningful upgrades. And if you choose projects that add value, you could boost your home’s future resale price too. -
Invest in your dreams.
Always wanted to start your own business? Your home equity could help cover startup costs, equipment, or marketing—giving you the momentum to build something meaningful and potentially increase your long-term earning power.