US Homeowners Experience Near-Record Highs in Home Equity Growth

Discover the latest CoreLogic report findings showing US homeowners gaining an average of $28,000 in home equity over the past year.

US homeowners have reason to celebrate as home equity has soared to near-record highs, according to a recent report from CoreLogic. The typical homeowner saw their equity increase by an impressive $28,000 over the past year, thanks to this year's record-high home price growth.

In the first quarter of 2024, home equity reached nearly an all-time high, with homeowners across the nation experiencing an average equity increase of 9.6%, translating to a $28,000 gain from the end of the first quarter of 2023 through the first quarter of 2024. This marks the largest increase since late 2022, as noted by CoreLogic researchers.

While the overall increase in home equity is significant, not all markets saw equal gains. Leading the pack are states like California, where the typical homeowner saw their equity increase by $64,000 year-over-year, followed by Massachusetts at $61,000 and New Jersey at $59,000. Other states such as Washington, Maine, New Hampshire, and Rhode Island also experienced above-average gains, with equity increasing by $40,000 or more in just a year.

In terms of metropolitan areas, homeowners in Los Angeles saw a remarkable $72,000 increase in home equity, while Miami homeowners gained $65,000 and Boston homeowners saw a $61,000 increase. Homeowners in Chicago, Las Vegas, and Washington, D.C., also fared well, with equity gains of $32,000 or more.

The surge in home equity has been a welcome relief for existing homeowners, especially as the cost of living continues to rise. Additionally, many homeowners who were previously upside down on their home loans have benefited from the increase in equity.

Looking ahead, CoreLogic researchers predict that further increases in home prices could lift more underwater homeowners out of their negative equity situation. A 5% increase in home prices could potentially help 111,000 homeowners, while a 5% decrease could leave 153,000 homeowners underwater on their mortgage.

The rise in home equity is a positive trend for homeowners across the country, providing financial stability and opportunities for those looking to leverage their equity for various purposes.