According to a 2016 survey of consumer finances, one's primary residence is the largest asset category for U.S. households, at 24 percent, or $24.2 trillion. The smallest share was Other Residential Real Estate at 6.3 percent.
Demographically, primary residences were the largest asset category for households in age groups 55 years and under, whereas in groups 55 to 64 years of age, the value of the home was higher, yet the residence itself was the asset of third-greatest value, behind business interests and other financial assets, according to National Association of Home Builders' analysis. Yet, in households 65 years of age or older, the primary residence asset category moves up to second place as business interests dwindle down to third.
On the debt side of homeowners’ balance sheet, the value of the primary mortgage debt was the largest liability faced by the homeowners. However, the median value of mortgage debt declined between the 35 to 64 age categories, more than half of homeowners above the age of 65 did not have mortgage debt (nor a balance on any of the other major debt categories). Across homeowners, the median amount of primary residence equity, home equity, rose successively with age, largely reflecting a lower amount of mortgage debt as opposed to a higher home value.
Advertisement
Related Stories
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March