Key Details:
- Data from the Federal Reserve shows that homeowners’ equity in real estate assets reached 72.7% in Q2 2024, rising to its highest level since 1958.
- Household real estate assets rose to $48.2 trillion, a 7.7% increase from the previous year, while real estate liabilities, including mortgages and home equity loans, grew by 2.6%.
- This trend highlights ongoing growth in homeowner wealth amidst rising property values.
Homeowners’ equity rose to 72.7% in Q2 2024, staying north of 70% for the tenth consecutive quarter and marking the highest level since Q4 1958, when it hit 73.3%.
Equity rose from 71.4% one year ago (Q2 2023).
That’s according to a new report from the National Association of Homebuilders (NAHB) based on data from the Federal Reserve.
Read on for the highlights.
Growth in Household Real Estate Assets
The total market value of household real estate assets increased to $48.2 trillion in Q2 2024—up from $46.4 trillion in the previous quarter (Q1 2024).
Year over year, real estate assets rose by 7.7%, following a 9.2% increase in the first quarter.
These assets include all the following at current market value:
- Owner-occupied housing
- Vacant homes
- Second homes
- Farmhouses
- Mobile homes
- Vacant land
Owners’ equity is calculated as the difference between the current market value of a homeowner’s property and its outstanding debt (assets minus liabilities).
Increase in Real Estate Liabilities
Household real estate liabilities—including mortgages, home equity loans, and HELOCs—increased by 0.8% in Q2 2024, reaching $13.1 trillion.
Compared to the second quarter of 2023, liabilities increased by 2.6%, showing the same rate of growth observed in the first quarter of 2024. These liabilities include all outstanding residential mortgages, as well as all loans secured by property liens.
Read the full report for more information. And catch Byron Lazine’s breakdown of the equity data in Tuesday’s Hot Sheet.
Watch it here:
