Homeowner Equity Continues to Soar

Despite challenging economic conditions, homeowners in the U.S. saw home equity grow by over $3 trillion at the end of 2024. According to real estate marketing platform Realtor.com, the total value of owner-occupied real estate reached $48.1 trillion in Q4 2024, while home equity hit $34.7 trillion—both marking the third-highest levels on record. While mortgage rates remain high, this growth provides some relief for homeowners. At their current rate, even if home values were to drop by 10%, overall equity would still remain strong at 69.5%, which is comparable to levels seen in 2021.

From October to December 2024, the total value of owner-occupied real estate, or the market value of all homes owned by those living in them, shed $400 billion from the previous quarter’s high, settling at $48.1 trillion, according to a Realtor.com analysis of the Fed's data.

This reflects a retreat from the highest total recorded earlier in 2024. But on the plus side, homes gained $3.2 trillion in value over the past year, highlighting the surge of the housing market over the past 10 years. Read more