Discover How Much Home Equity You've Built Over the Years

There are several reasons you might be considering selling your home. As you explore your options, one major concern might be navigating today’s housing market, particularly when it comes to affordability. If this is your primary worry, knowing how much equity you’ve built in your home could make your decision easier. Two key factors significantly impact your home equity.

How Long You’ve Owned Your Home

The first factor is homeowner tenure, or how long people typically stay in a home before selling or moving. Between 1985 and 2009, the average tenure was around six years. However, according to the National Association of Realtors (NAR), this has increased, and today the average homeowner stays for about 10 years (see graph below):

Here’s why that matters. You build equity as you pay down your mortgage and as home prices increase. Over a 10-year span, the combination of your mortgage payments and rising home values can really add up. So, if you’ve been in your home for a while, you could be sitting on a significant amount of equity.

How Home Prices Appreciate Over Time

To illustrate how much home price appreciation can contribute, take a look at this data from the Federal Housing Finance Agency (FHFA) (see graph below):

Here’s what this means for you: While home prices vary by location, the average homeowner who has lived in their home for five years has seen its value rise by nearly 60%. And for those who’ve owned their home for 30 years, its value has more than tripled.

Whether you’re thinking of downsizing, relocating to your dream spot, or moving closer to friends and family, the equity you’ve built can make a big difference.

Bottom Line

If you're curious about how much equity you've accumulated and how it can help you make your next move, whether it’s buying a new home or investing elsewhere, connect with a local real estate agent to explore your options and maximize your investment.