With home values soaring, homeowners are sitting on a goldmine, but not everyone is reaping the rewards. Thanks to a surge in home prices, the equity held by American homeowners has hit an all-time high. But while current homeowners are seeing their wealth grow, many potential buyers are finding homes increasingly out of reach.

• According to the Federal Reserve Bank of St. Louis, US homeowners have amassed a record-breaking $35T in home equity as of the second quarter of 2024.
• Intercontinental Exchange’s Andy Walden explains that rising home prices have “continued to build the fortunes of existing homeowners, pushing tappable equity to its highest level ever.”

Renovate, don’t relocate: With mortgage rates still around 6.3%, many homeowners are choosing to stay put and invest in their current homes rather than face higher borrowing costs — effectively locking in homeowners at their pandemic-era low rates. This trend is reflected in the Conference Board’s Consumer Confidence Index, which shows home purchase intentions at their lowest point in 12 years. KHORR Realty’s Pila Jessie adds that price hikes from 2021 to 2023, “coupled with a fast interest rate hike leaves fewer people about to purchase, which is leading to fewer buyers in the market.”