When’s the last time you checked how much your home is actually worth? (Be honest — it’s probably been a while!)
But when it comes to your financial future, it’s something you can’t afford to ignore.
Here’s the deal: for most people, your home is your biggest asset. And if you’ve been living there for a few years — or longer — there’s a good chance it’s been quietly building serious wealth for you in the background. You might be shocked by just how much.
First, What Exactly Is Home Equity?
Home equity is like your hidden superpower. It’s the difference between what your home is worth and what you still owe on your mortgage.
And the best part? It grows over time — both as you pay down your loan and as home values rise.
Here’s a quick example:
Say your home is worth $500,000 today and you still owe $200,000 on your mortgage. That means you have $300,000 in equity just sitting there.
And you’re not alone — according to Cotality (formerly CoreLogic), the average homeowner with a mortgage is sitting on about $311,000 in equity. Crazy, right?
Why You Might Have Way More Equity Than You Think
There are two big reasons homeowners like you are seeing record equity right now:
1. Home Prices Have Skyrocketed
Over the last five years, home prices nationwide have jumped more than 57%, according to the Federal Housing Finance Agency (FHFA). See map below:
So, if you bought your home even just a few years ago, odds are it’s worth a lot more now. And that means your equity has gone up too — probably more than you realize.
2. People Are Staying in Their Homes Longer
It used to be that homeowners would move every few years. Not anymore.
Today, the typical homeowner is staying put for about 10 years, according to the National Association of Realtors (NAR). See graph below:
And over a decade of paying your mortgage and riding that wave of home price growth? You’ve built up a ton of hidden wealth.
NAR puts it like this:
"Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation."
That’s a pretty sweet savings account you didn’t even have to think about.
So What Could You Actually Do With That Equity?
This is the fun part — because your equity is more than just a number on paper. It’s a tool that can help you unlock major life moves.
Here’s how you could put it to work:
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Use it for your next home: Your equity could cover your down payment — or even let you buy your next place with cash.
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Make upgrades to your current home: Love your neighborhood but need a refresh? Renovate and make your home fit your life now — and boost its value even more for later.
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Invest in your future: Always dreamed of starting your own business? Your equity could help you finally make it happen.
Bottom Line
Your home might be worth way more than you think. Whether you’re ready to sell, upgrade, or just want to have a real number in your back pocket, it’s worth knowing your options.
