Ever wondered how much wealth you’ve built just by owning your home? As home prices go up, so does your net worth. And if you’ve been in your house for a while, there’s a good chance you’re sitting on more equity than you think.

What’s Home Equity Anyway?

In simple terms, home equity is the difference between what your home is worth and what you owe on your mortgage. For example, if your home is valued at $500,000 and you owe $200,000, you’ve got $300,000 in equity. That’s your wealth, just from owning a home!

Right now, homeowners are seeing record amounts of equity. According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has about $319,000 in equity.

Why Are Homeowners Sitting on So Much Equity?

Two big reasons explain this rise:

• Home Prices Have Skyrocketed

Over the past few years, home prices have gone through the roof. The Federal Housing Finance Agency (FHFA) says home prices nationwide have jumped by 57.4% over the last five years. Translation? Your home is probably worth way more than when you bought it.

• People Are Staying Put Longer

According to the National Association of Realtors (NAR), the average homeowner stays in their home for 10 years. Staying put gives your home more time to appreciate in value, which builds even more equity.

If you’ve been in your home for 10 years or more, here’s something cool: NAR reports that the typical homeowner has gained about $201,600 in wealth just from price appreciation in the last decade.

What Can You Do with All That Equity?

Your home equity isn’t just sitting there looking pretty. It’s a powerful financial tool that can open doors to exciting opportunities:

• Upgrade to Your Next Home

Thinking about moving? Your equity could cover the down payment for your next place — or maybe even let you buy it outright with cash.

• Renovate Your Current Home

Dreaming of a kitchen remodel, a new home office, or other upgrades? Your equity can help fund those projects, making your home more valuable and enjoyable.

• Start That Business You’ve Been Dreaming Of

If you’ve been itching to start your own business, your equity might be the jumpstart you need. From startup costs to marketing, it can help make your entrepreneurial dreams a reality.

Bottom Line

Whether you’re planning to sell, upgrade, or just want to explore your options, your home equity is a big deal. If you’re curious about how much equity you’ve built or how to use it to achieve your goals, let’s chat and figure it out together!