Homeowners are now sitting on $35.8T in equity — here's the breakdown

Cincinnati, Ohio
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Homeowners are now sitting on $35.8T in equity — here's the breakdown

Daniel Vera
Specialist · Cincinnati, OH · Member since 2026 · 32 posts · 4 votes

Fed just released the numbers (Z.1 report, Sept 2026):

  • Total value of all U.S. homes: $49.8T (up 2.5% YoY)

  • Total mortgages/loans against them: $14.0T (up 3.0% YoY)

  • Net equity owners actually hold: $35.8T (up 2.2% YoY)

  • Share of homes owned free and clear: 71.9% — 13 straight quarters above 70%

Prices have barely moved this year, but that's not the same as no opportunity. Most owners are still sitting on a huge equity cushion money that can fund a renovation, a down payment on the next property, or just breathing room if things get tight.

If you're an investor or owner and not sure what your equity position actually looks like, that's worth running the numbers on.

Source: Federal Reserve Z.1 / NAHB, September 2026.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3w

    This is why I do not believe there will be any type of real estate crash. Unlike in 2008, where many homes were underwater, today we have record equity. Will we continue to see an increase in foreclosures? Of course as we're still below numbers from 2014 to 2019. Will home prices soften or slow? Of course but there is a very big difference between a market that is not increasing and a crash 

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    • Daniel Vera
      OP
      Specialist · Cincinnati, OH · Member since 2026 · 32 posts · 4 votes
      3w

      Facts Chris! I totally agree thanks for the input. Im seeing too many generic posts from realtors about " RATES RATES RATES" I think thats just sounds scary to consumers. More important for consumer to understand the big picture and the position in the long run and not just focus on current rates.

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3w

    OP great info. Covers equity positions.

    Next cut to me is age or retiree, then income levels. How tight of a fixed income along with savings.

    To me the next squeeze is Property

    Tax and insurance. With inflation and dollar devaluation. Taxing authorities will keep increasing their budgets and Insurance companies will increase premiums as material costs inflate.

    Fixed incomes won’t adjust at the same rates and keep up.

    Although no housing crash. With baby boomers adjusting to fixed incomes. There will be movement within that group to adjust to income levels.

    We are in Self storage so this is a good pattern for us. We also do Country subdivision lots. This may keep interest up as people want to downsize or move to lower property tax rates and take equity out. We aren't adjusting our investment strategy on either of these REI strategies.

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