Here’s something important most homeowners don’t check nearly as often as they should: the current value of their home. And no, I’m not just talking about what a neighbor’s house sold for or what a quick online estimate says. I mean a professional, up-to-date look at your property’s worth in today’s market.
Why does this matter? Because your house is most likely the single biggest financial asset you own. If you’ve lived in it for several years, or even just a few, you’ve probably been quietly building wealth without even realizing it. In fact, with how the Texas real estate market has shifted over the last few years, you may be surprised at just how much equity you’ve gained.
What Is Home Equity?
Home equity is the difference between your property’s current market value and what you still owe on your mortgage. Think of it as the hidden wealth your house has been building for you behind the scenes.
For example, if your home is worth $500,000 today and your remaining loan balance is $200,000, you now have $300,000 in equity. That’s money you don’t see in your bank account, but it’s absolutely yours, and it’s a powerful tool for your financial future.
According to CoreLogic, the average U.S. homeowner with a mortgage has over $300,000 in equity right now. For those in strong-growth markets like Texas real estate, that number can be even higher.
Why You Probably Have More Equity Than You Think
Two big factors are driving record amounts of home equity:
- Home Price Growth. Even with market shifts, home values have climbed dramatically over the past five years. According to the Federal Housing Finance Agency (FHFA), prices are up nearly 54% nationwide. Many Texas real estate markets have grown even faster, especially in cities like Austin, Dallas-Fort Worth, and Houston.
- Longer Homeownership. The National Association of Realtors (NAR) reports that homeowners are staying put for an average of 10 years now—longer than ever before. That’s a decade of making monthly payments and riding the wave of price appreciation. Over that time, the typical homeowner has gained over $200,000 in wealth from appreciation alone.
What Can You Actually Do with That Equity?
Your equity isn’t just a number—it’s a financial tool. Here’s how homeowners in Texas and beyond are putting it to work:
- Move Up or Downsize. Use your equity as a down payment on your next property. In some cases, homeowners are able to pay cash for their next house.
- Renovate Your Current Home. Upgrades like kitchens, bathrooms, or outdoor spaces can improve your lifestyle now and add even more value later.
- Invest in Your Future. Some people tap equity to fund education, launch a business, or invest in additional real estate.
Bottom Line
Your home’s value is constantly changing, and chances are, it’s worth more than you think. Especially in the Texas real estate market, where growth has been strong in recent years, keeping track of your home equity is key to understanding your financial options.
If you’re curious about how much equity you really have, connect with a local real estate professional who understands your market. They can help you run the numbers, give you a clear picture of your wealth, and guide you on how to put it to work for your future.