Rising property values have skyrocketed home equity over the past five years. According to the National Association of Realtors’ most recent quarterly report, homeowners have gained nearly $150,000 in home equity since 2019 — or about $30,000 per year.¹

The growth represents a 9.8% year-over-year increase in equity (Q2 2023 vs Q2 2024), with nearly half of all mortgaged homes now classified as “equity-rich,” meaning owners hold at least 50% equity in their properties.^2,3

Homeowners’ equity in real estate 2019 to 2024

It can pay to own a home, and more than half of Americans agree — 52% define financial success as purchasing property, according to Empower research.

Turning bricks into bucks

Homeownership enables people to steadily build wealth as they pay down their mortgage and property values rise.  Because home equity represents the difference between the value of a home and a mortgage, rising home values typically result in equity gains.

In the third quarter of 2024, the national median asking price for single-family homes reached $418,700, while U.S. house prices rose 4.3%  between Q3 of 2023 and the Q3 of 2024, according to the Federal Housing Finance Agency (FHFA).^4,5 House prices were up 0.7% compared to the previous quarter.

Read more: Homeowners reach record high $35 trillion in equity

Equity hotspots

Regional increases reveal even greater jumps in high-demand areas, particularly in the Midwest and Northeast regions. According to ATTOM, homes considered equity-rich increased in 37 states this year.⁶

The states with the largest increase of homes considered equity rich were:

1. Vermont: 79.8% to 86.4%
2. West Virginia: 30.5% to 37%
3. Connecticut: 41.5% to 47.7%
4. New Jersey: 45.9% to 52%
5. Rhode Island: 54.7% to 60.6%

The equity gains ran parallel to home price increases by region, with prices increasing 7.8% in the Northeast, 4.3% in the Midwest and 1.8% in the West.⁷

Read more: What is the average net worth by state?

The housing market has also been heating up in some cities, with major equity gains due to rising property values from May 2019 to May 2024.⁸ Notable cities include:

• Nashville, Tennessee: Home prices have surged 57.1% over the past five years, with median prices rising from $375,000 to $588,000
• Los Angeles, California: The median home price jumped 55.1% since 2019, reaching $1.25 million
• Providence, Rhode Island: Prices climbed 54.2% increasing median home values from $380,000 to $586,000
• Austin, Texas: Home prices rose 53.3% from $371,000 to $565,000
• Memphis, Tennessee: Prices increased by 52.1%, moving the median price from $230,000 to $350,000

These increases have contributed to a national home equity boost of $1.3 trillion over the past year.⁹