Owners’ Equity Share of Household Real Estate Assets Reaches Highest Level in Over 60 Years

Owners’ equity share of household real estate assets remained above 70% for the tenth straight quarter, continuing to mark the highest levels of this share since the late 1950s. The share in the second quarter of 2024 was 72.7%, up from a year ago when it stood at 71.4%. Notably, this is the highest reading of owners’ equity share since the fourth quarter of 1958, when it was 73.3%.

Household real estate assets represent all types of owner-occupied housing including farm houses and mobile homes, as well as second homes that are not rented, vacant homes for sale, and vacant land at current market value. Household real estate liabilities represent all outstanding residential mortgages as well as loans made under home equity lines of credit and home equity loans secured by junior liens. Owners’ equity is the difference between the current market value of the household’s property and the existing debt secured by the property (assets – liabilities).

The market value of household real estate assets rose from $46.4 trillion to $48.2 trillion in the second quarter of 2024 according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. Over the year, household real estate assets were 7.7% higher in the second quarter following a 9.2% increase in the first quarter.

Household real estate secured liabilities, i.e. mortgages, home equity loans, and HELOCs, increased 0.8% over the second quarter to $13.1 trillion. This level is 2.6% higher than the second quarter of 2023, the same as the increase in the first quarter of 2.6%.