Rising home prices may have pushed a significant share of would-be buyers to the sidelines over the past several years, but they also created a wealth-building opportunity for homeowners who chose to stay put rather than sell. Middle-income homeowners have seen their properties appreciate by 68% since 2012, amounting to $122,100 in equity wealth, according to the National Association of Realtors. Similarly, low-income homeowners reported $98,900 in equity gains, and upper-income households accrued $150,800 in equity.
As a result, more households were able to pay off their debts or refinance their mortgages, leaving homeowners with a net worth roughly 40 times higher than that of a renter.
Owners who live in pricey metro areas have seen some of the largest wealth gains over the last decade, according to NAR’s report. For example, in the San Jose metro area, low-income earners have accumulated nearly $630,000 over the last 10 years while middle-income earners gained $643,000. All of the top 10 areas with the largest wealth gains for low-income owners—with equity surpassing $290,000—were located in California.
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