Currently Reading

More Americans Became Equity Rich During the Pandemic

Advertisement
New-Home Sales

More Americans Became Equity Rich During the Pandemic

The silver lining of record high home prices


November 12, 2021
Home equity graphic with hands placing money into chimneys
Image: Stock.adobe.com

As home prices reach record highs, more homeowners are gaining significant equity, meaning that some can even sell their homes for twice the amount they owe on their mortgages, according to Realtor.com. In the third quarter of 2021, roughly 39.5% of homes with equity in the United States were equity rich compared with 28.3% of homes a year ago. Homeowners are also putting more money down when buying a home in today’s market, which builds equity right away. 

Almost every state saw equity rates increase and underwater rates decrease, but the states with the largest share of equity-rich homes are concentrated in the West, where prices are also the highest.

Idaho, where prices have boomed in recent years, leads the pack as 65.1% of all homes with mortgages there were equity rich. Median list prices in the state surged nearly 28% in October compared with the same month a year earlier, according to the most recent Realtor.com® data. The rise is largely due to an influx of new residents moving in from California and other pricey states over the past few years, particularly during the COVID-19 pandemic.

The other states with the highest rates of home equity were Vermont (61.2%), Utah (60.9%), Washington (56.2%), and Arizona (53.2%).

Read More

Related Stories

Affordability

As the Housing Market Loses Steam, a Growing Number of Sellers Are Dropping Their Asking Prices

The Fed's most recent mortgage rate hike is putting a damper on home sales, and in order to attract remaining buyers, sellers are increasingly slashing their asking prices

New-Home Sales

The 10 Hottest Housing Markets Seeing the Fastest Home Sales

Jackson, Mississippi tops the list of the 10 cities where homes are flying off the market the fastest, followed closely by other southern metros and a few northeastern hotspots

Market Data + Trends

Rising Real Estate Listings Signal Strong Post-Pandemic Recovery for the Housing Market

As demand softens, a resurgence of home listings sets the stage for the housing market's post-pandemic rebalancing 

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.