U.S. Homeowners Sitting on Record Equity, Home Co-Investing Leader Unison Finds
HI, CA, DC lead among states
Among large MSAs, Phoenix, Columbus, Cleveland see biggest annual gains
SAN FRANCISCO, Sept. 23, 2021 /PRNewswire/ -- With U.S. home prices surging at the fastest pace in four decades, homeowners are sitting on a record $22.7 trillion of home equity, $2.7 trillion of that gained in the last year alone, according to a new study by Unison, the leader in home co-investments. While it may not be a shock to see that high-priced states like Hawaii and California top the list, some of the year-over-year winners may surprise you.
"We're seeing an unprecedented bifurcation of the market," Thomas Sponholtz, CEO and Chairman of Unison said. "With incredibly strong demand for homes and housing supply significantly below the historical average, many buyers are paying a premium above the listing price - if they're able to find homes at all. Meanwhile, homeowners are participating in one of the biggest wealth-building moments we've seen in residential real estate. The record levels of tappable equity they're accumulating give them a lot of options, whether they're eyeing retirement or renovation."
Home equity values vary significantly across the country. The highest median home equity values, in Hawaii, DC and California, are more than quadruple those of typical homes found in states such as Illinois, Ohio and Oklahoma1.
Reflecting a long run of home price appreciation, California claims five of the ten metropolitan statistical areas (MSA) with the most accumulated home equity out of the nation's largest MSAs: San Jose-Sunnyvale-Santa Clara; San Francisco-Oakland-Berkeley; Los Angeles-Long Beach-Anaheim; San Diego-Chula Vista-Carlsbad; and Sacramento-Roseville-Folsom.
Metropolitan Statistical Area | Median Home Equity Value | Median Home Value |
San Jose-Sunnyvale-Santa Clara, CA | $950,271 | $1,327,615 |
San Francisco-Oakland-Berkeley, CA | $681,471 | $1,045,503 |
Los Angeles-Long Beach-Anaheim, CA | $475,135 | $744,447 |
San Diego-Chula Vista-Carlsbad, CA | $403,711 | $677,887 |
Seattle-Tacoma-Bellevue, WA | $337,919 | $586,495 |
Boston-Cambridge-Newton, MA-NH | $316,927 | $541,951 |
New York-Newark-Jersey City, NY-NJ-PA | $284,671 | $501,503 |
Sacramento-Roseville-Folsom, CA | $270,847 | $478,719 |
Denver-Aurora-Lakewood, CO | $266,239 | $487,900 |
Portland-Vancouver-Hillsboro, OR-WA | $258,815 | $456,900 |
Austin-Round Rock-Georgetown, TX | $244,479 | $395,519 |
Salt Lake City, UT | $233,087 | $419,839 |
Riverside-San Bernardino-Ontario, CA | $227,199 | $432,895 |
Washington-Arlington-Alexandria, DC-VA-MD-WV | $208,383 | $467,967 |
Providence-Warwick, RI-MA | $199,423 | $348,159 |
Phoenix-Mesa-Chandler, AZ | $188,671 | $336,895 |
Las Vegas-Henderson-Paradise, NV | $188,671 | $339,900 |
Minneapolis-St. Paul-Bloomington, MN-WI | $184,831 | $319,000 |
Miami-Fort Lauderdale-Pompano Beach, FL | $180,223 | $317,439 |
Nashville-Davidson-Murfreesboro-Franklin, TN | $180,223 | $312,319 |
As of July 2021, the San Jose metropolitan area, home of Silicon Valley, boasts a whopping $950,000 median home equity value and a median home value of $1.33 million. The San Francisco metropolitan area, known for its high-tech fanfare and being the second largest financial center in the U.S., enjoys a $681,000 median home equity value and a median home value of $1.05 million2.
Looking at year-over-year growth, as of July 2021, 49 of the 50 largest metros recorded an increase in median home equity values of over 10% from the previous year, with the exception of the Louisville/Jefferson County metro in Kentucky, which grew 9.7%. Homeowners across all these metros possess more home equity than ever before.
First among large metros, the Phoenix metro area experienced an unparalleled 28.7% year-over-year leap in median home equity, with a value increase of $42,000. Columbus, Cleveland, and Virginia Beach followed, all with increases in home equity of over 25%, though the value increases were smaller: approximately $24K, $17K, and $20K, respectively.
Metropolitan Statistical Area | Percentage Change in Median Home | Value Change in Median Home |
Phoenix-Mesa-Chandler, AZ | 28.7% | $42,112 |
Columbus, OH | 26.9% | $24,448 |
Cleveland-Elyria, OH | 25.1% | $17,216 |
Virginia Beach-Norfolk-Newport News, VA-NC | 25.0% | $20,480 |
Cincinnati, OH-KY-IN | 24.4% | $19,904 |
Sacramento-Roseville-Folsom, CA | 23.9% | $52,224 |
Atlanta-Sandy Springs-Alpharetta, GA | 23.5% | $27,392 |
Charlotte-Concord-Gastonia, NC-SC | 23.5% | $27,072 |
Austin-Round Rock-Georgetown, TX | 23.5% | $46,464 |
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 23.5% | $23,424 |
Salt Lake City, UT | 23.4% | $44,160 |
Washington-Arlington-Alexandria, DC-VA-MD-WV | 23.0% | $38,912 |
Memphis, TN-MS-AR | 22.9% | $15,936 |
Jacksonville, FL | 22.5% | $24,768 |
Kansas City, MO-KS | 22.0% | $20,864 |
Outside the largest metropolitan areas, the spectrum varies further in terms of home equity changes3. The California-Lexington Park metropolitan area in Maryland saw the highest home equity increase in the nation, jumping 58% from a year ago.
Metropolitan Statistical Area | Percentage Change in Median Home | Value Change in Median Home |
California-Lexington Park, MD | 58.1% | $34,816 |
East Stroudsburg, PA | 50.2% | $37,264 |
Fayetteville, NC | 47.1% | $12,864 |
Idaho Falls, ID | 43.7% | $53,504 |
Pocatello, ID | 41.4% | $39,567 |
Jacksonville, NC | 40.5% | $15,360 |
Twin Falls, ID | 40.2% | $50,703 |
Boise City, ID | 40.0% | $78,592 |
Pueblo, CO | 38.4% | $37,844 |
Jackson, WY-ID | 37.8% | $289,792 |
While many metropolitan areas have seen increased home equity values over the past year, smaller metros have not all enjoyed the same frenzy. Jacksonville, IL has seen a 19.5% drop in median home equity, or a value decrease of $15,000.
Metropolitan Statistical Area | Percentage Change in Median Home | Value Change in Median Home Equity |
Jacksonville, IL | -19.5% | -$15,000.00 |
Vernon, TX | -12.8% | -$10,100.00 |
Macomb, IL | -8.6% | -$7,100.00 |
Salina, KS | -8.0% | -$10,300.00 |
Blytheville, AR | -7.3% | -$6,800.00 |
Rochester, MN | -6.3% | -$14,500.00 |
Pontiac, IL | -6.3% | -$6,200.00 |
Kearney, NE | -6.0% | -$11,400.00 |
Paducah, KY-IL | -5.6% | -$6,705.00 |
Brookings, SD | -5.5% | -$12,279.00 |
The full report can be seen here.
About Unison
Unison is a San Francisco-based company that is pioneering a smarter, better way to own your home. Until now, the only way to finance a home was by taking on debt. Through home co-investments, we help homeowners access their equity flexibly with no monthly payments or interest. We enhance home affordability, reduce debt, and deliver a less risky way for homeowners, investors, and society to think about their most important asset - the home. For additional information, visit www.unison.com or follow us on Facebook, Instagram, LinkedIn, Twitter and YouTube.
1 All home equity values in this report are estimated based on data from CoreLogic
2 Median home values are based on automated valuation model (AVM) values from CoreLogic.
3 Based on CoreLogic data for metropolitan statistical areas with consistent property counts from July 2020 to July 2021.
SOURCE Unison Homeownership Investors
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