Building Wealth Through Home Equity in 2025

For millions of Americans — and thousands of families here in Metro Denver — the value of homeownership goes far beyond having a place to live. It’s about the wealth that builds quietly over time through home equity, and in 2025, that story continues to unfold in powerful ways.

Equity Growth Remains Strong

Despite economic uncertainty, homeowners are sitting on historic levels of wealth. In the first quarter of 2025 alone, U.S. homeowners with mortgages gained a combined $115 billion in equity, pushing the average homeowner’s equity to roughly $302,000.This builds on a long-term trend: between 2019 and 2022, median household equity jumped nearly $47,900, helping to push overall household net worth to record highs.

Nearly Half of Homeowners Are “Equity Rich”

By the end of 2024, almost 48% of U.S. homeowners were considered equity rich, meaning their mortgage balance represented less than half of their home’s value. Even more striking: 95% of homeowners now hold at least some equity.This highlights one of the greatest advantages of homeownership compared to renting — the ability to grow long-term wealth through property ownership.

$35 Trillion in Equity — With New Challenges Ahead

Altogether, Americans now hold roughly $35 trillion in housing equity, an 80% increase since 2020. That’s incredible growth — but tapping into it isn’t always simple. Rising property insurance premiums and increasing maintenance costs are affecting affordability in markets like Denver and beyond.For many homeowners, the question isn’t whether they have equity — it’s how to use it wisely.

Why This Matters for Metro Denver Homeowners

Equity can be a powerful tool:

• Funding home renovations that add long-term value
• Consolidating higher-interest debt
• Supporting education or retirement planning
• Strengthening overall financial stability

At the same time, protecting equity through smart home maintenance and financial planning is just as important as growing it.Home equity remains one of the most powerful wealth-building tools available to homeowners today. Even in a shifting market, it provides security, flexibility, and opportunity. The key is understanding your equity position and making informed decisions about how and when to leverage it.

Curious about how much equity you’ve built in your Metro Denver home? Rick Cavallaro and Rhino Realty Pros can provide a personalized equity analysis and connect you with trusted lending partners to help you unlock its potential.