Record Surge in Household Real Estate Value and Equity in Q2 2025

September 16, 2025 - 08:07

In the second quarter of 2025, the latest Flow of Funds data from the Federal Reserve revealed a remarkable recovery in the value of owner-occupied real estate. After a slight downturn in the previous quarter, the total value surged to an unprecedented $49.3 trillion. This rebound signals a strong recovery in the housing market, showcasing resilience amid fluctuating economic conditions.

Home equity has also experienced a significant upswing, reaching an all-time high of $35.8 trillion. This increase in equity is a positive indicator for homeowners, reflecting rising property values and improved financial stability for many families.

Conversely, mortgage debt has continued its upward trajectory, climbing to a record $13.5 trillion. This growth in mortgage debt highlights the increasing reliance on borrowing as homeowners capitalize on the rising value of their properties. The overall data paints a picture of a dynamic real estate landscape, characterized by both opportunities and challenges for homeowners and potential buyers alike.