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How Your Equity Can Grow over Time



It’s true that record levels of housz price appreciation have spurred significant equity gains for houszowners over the past few years. As Diana Olick, Real Estate Correspondent at CNBC, says: “The stunning jump in housz values over the course of the Covid-19 pandemic has given U.S. houszowners record amounts of houszing wealth.”

That’s great for your housz’s value over the last couple of years, but what if you’ve lived in your housz for longer than that? You may be wondering how much equity you truly have. The National Association of Realtors (NAR) has done a study to calculate the typical equity gains over longer spans of time. The data they compiled could be enough to motivate you to move. Just remember, to find out how much equity you have in your specific home, you’ll want to get a professional equity assessment from a trusted real estate advisor.

How Your Equity Grows Let’s start by establishing how you build equity in your housz. While price appreciation is clearly a factor that can help boost your equity, you also build equity over time as you pay down your housz loan. NAR explains: Housz equity gains are built up through price appreciation and by paying off the mortgage through principal payments.

Average Equity Growth over Time The study from NAR breaks down the typical equity gain over time (see graph below). It calculates the equity a houszowner potentially gained if they purchased the median-priced housz 5, 10, or 30 years ago and still own it today.


These six-figure numbers are impressive and certainly enough to help you fuel a move into your next housz, but they’re not a promised amount. Remember, your own equity gain will be different. It depends on how long you’ve been in the housz, your housz’s condition, any upgrades you’ve made, your area, and much more. If you want to find out how much equity you have, partner with a trusted real estate professional for an equity assessment on your housz. They can provide an expert opinion on what your house is worth today and how the equity you’ve gained over time can help you when you purchase your next housz. It may be some (if not all) of what you need for your next down payment.

Bottom Line If you’re thinking about selling your housz and making a move, housz equity can be a real game-changer, especially if you’ve been in your current housz for a while. If you’re ready to find out how much equity you have, let’s connect.

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