How Much Equity Does The Typical Homeowner Have?

Simply put, equity refers to the value of your home minus the amount of money you still owe on your mortgage. It is the factor that separates homeowners from renters and is among the greatest creators of wealth for average Americans. But how much equity does the typical homeowner have? Well, according to new numbers from Zillow, the median homeowner with a mortgage has $78,683 in equity. Homeowners who have paid off their mortgage, on the other hand, have $177,158. And while there are a number of variables that determine how much equity an individual homeowner may have, it is clear that the increase in home prices over the past few years has helped homeowners build back value in their homes. The study did find, however, that some homeowners are doing better than others. When broken down demographically, homeowners between the ages of 35 and 50 tend to have a lower percentage of equity than other generations. Why is that? Well, one reason could be that Generation X home buyers were most affected by the housing crash, as they would’ve been at the prime buying age for a first home in the years just before prices fell. More here.


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