Homeownership is the largest source of wealth among households. Housing wealth (or net worth or equity) is built up over time via the home price appreciation and the principal payments that the homeowner makes on the loan.
NAR calculated the gains in housing wealth (equity) over a 5, 10, 15, and 30 year holding period using NAR’s median existing home price data, assuming a 10 percent down payment and a 30-year fixed rate mortgage. These calculations are illustrative of the magnitude of the wealth gains over time. Actual wealth gains will vary by property and type of financing.
Nationally, most of the wealth gains accrue from the appreciation in home values. As of 2020 Q2, a homeowner who purchased a single-family existing home five years ago (2015 Q2) gained $81,488 in wealth (equity), of which $61,600, or 75% was from the home price appreciation. Homeowners typically stay in their home for 10 years, so a homeowner who bought a home 10 years ago (2010 Q2) would have $144,490 in home equity gains. Over a 30-year period, the total home equity gain is $283,022. As of 2020 Q2, the annual home price growth over a 30-year period is 3.7%.
Download the .pdf reports for 181 metropolitan statistical areas.
Alabama
Alaska
No data available
Arizona
Arkansas
California
Los Angeles – Long Beach – Glendale
Riverside – San Bernardino – Ontario
Sacramento – Roseville – Arden – Arcade
Colorado
Connecticut
Delaware
District of Columbia
Florida
Crestview – Fort Walton Beach – Destin
Deltona – Daytona Beach – Ormond Beach
Miami – Fort Lauderdale – West Palm Beach
Naples – Immokalee – Marco Island
North Port – Sarasota – Bradenton
Palm Bay – Melbourne – Titusville
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
No data available
Nebraska
Nevada
New Hampshire
New Jersey
Allentown – Bethlehem – Easton
New York – Newark – Jersey City
New York – Jersey City – White Plains
New Mexico
New York
Buffalo – Cheektowaga – Niagara Falls
Dutchess County – Putnam County
Nassau County – Suffolk County
New York – Newark – Jersey City
North Carolina
Charlotte – Concord – Gastonia
Myrtle Beach – Conway – North Myrtle Beach
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Charlotte – Concord – Gastonia
Greenville – Anderson – Mauldin
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
No data available