Pandemic Makes Homeowners $1 Trillion Richer

American homeowners have collectively gained $1 trillion in home equity since the beginning of the pandemic. CNBC reports that homeowners with mortgages have experienced a 10.8% jump in equity, according to numbers from CoreLogic. On average per homeowner, that would be a $17,000 gain—the highest equity gain in more than six years. But not all homes are equal. Some states saw higher gains than others, and it is those states seeing the highest home prices, such as Washington, California, and Massachusetts.

However, homeowners in North Dakota, which was particularly hard-hit by the coronavirus pandemic, saw the lowest annual equity gain of just $5,400.

“Over the past year, strong home price growth has created a record level of home equity for homeowners,” said Frank Nothaft, chief economist at CoreLogic. “The average family with a home mortgage loan had $194,000 in home equity in the third quarter. This provides an important buffer to protect families if they experience financial difficulties.”

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