When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the non-financial benefits, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.
For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as home values climb, your equity does too. That’s exactly what’s happening today. There aren’t enough homes on the market to meet buyer demand, so bidding wars and multiple offers are driving prices up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.
Dr. Frank Nothaft, Chief Economist at CoreLogic, explains it like this:
“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”
To find out just how much rising home values have impacted equity, we turn to the latest Homeowner Equity Insights from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.
Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.
How Rising Equity Impacts You
If you’re already a homeowner, equity not only builds your wealth, it also opens doors for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have changed and you’re looking for something new.
If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a financial one too.
Bottom Line
Whether you’re a current homeowner or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.
Chrysti Tovani is a Fair Oaks real estate advisor, life-transition specialist, and the author of Downsizing with Intention. Her work is built around one idea: making room for what comes next. Through The Making Room Framework™, she helps people sell long-held homes, downsize with clarity, and move through major life changes with confidence, care, and a real plan.
With decades of experience across real estate, mortgage, and title, Chrysti brings deep industry knowledge and thoughtful preparation to every move. She is a Seniors Real Estate Specialist® (SRES) and a Certified Probate and Trust Real Estate Specialist, and her approach blends strategic marketing, skilled negotiation, and emotional intelligence so each transition is handled with both precision and heart.
Chrysti is also the founder of I Love Fair Oaks, a hyperlocal media platform celebrating trusted businesses and community life in Fair Oaks, California, a beloved Sacramento County community known for its historic village, the American River Parkway, and a small-town feel that keeps people here for decades. She has called it home for more than 35 years. Chrysti is a licensed REALTOR® with eXp Realty of California, DRE #01118449.
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