Looking at year-over-year growth (July 2020 to July 2021), researchers found 49 of the 50 largest metros recorded an increase in median home equity values of more than 10%.
Metro Orlando ranks among the top U.S. cities when it comes to increasing home equity value, according to home ownership investment company Unison’s “2021 Home Equity Report.”
The City Beautiful ranks No. 29 among the 50 largest metros in the country in terms of the percentage growth in median home equity over the past year, with a growth of 17.9%.
However, metro Orlando had a slight decrease in median home equity value during part of last year. Orlando homeowners saw a 0.5% decrease and a value decrease of $640 in median home equity value between the second and third quarters in 2020, while Tampa saw a 0.4% decrease (-$512) and Jacksonville saw a 0.3% decrease (-$320) during that period.
“Despite the small temporary decrease in median home equity that briefly occurred in 2020, Orlando, along with other major metros in Florida, has enjoyed high growth in home equity values thanks to the leap in home values,” Winfield Xu, the author of the Home Equity Report and San Francisco-based Unison’s senior data scientist, told Orlando Business Journal.
Meanwhile, Jacksonville ranks No. 14 among the top U.S. cities when it comes to increasing home equity value year-over-year (July 2020 to July 2021), according to the study. Jacksonville homeowners enjoyed a median home equity increase of 22.5%, and a value increase of $24,768.
Looking at year-over-year growth, researchers found 49 of the 50 largest metros recorded an increase in median home equity values of more than 10%, with the exception of Louisville, Kentucky, which grew 9.7%.
Topping the list for increasing median home equity value is Phoenix, with a 28.7% increase and a value increase of $42,000, followed by Columbus, Ohio (26.9%, $24,448), Cleveland (25.1%, $17,216) and Virginia Beach, Virginia (25%, $20,480).
With U.S. home prices surging at the fastest pace in four decades, homeowners are sitting on a record $22.7 trillion of home equity, $2.7 trillion of that gained in the last year alone, according to the study.
“We’re seeing an unprecedented bifurcation of the market,” Thomas Sponholtz, CEO and chairman of Unison, said in a prepared statement. “With incredibly strong demand for homes and housing supply significantly below the historical average, many buyers are paying a premium above the listing price – if they’re able to find homes at all. Meanwhile, homeowners are participating in one of the biggest wealth-building moments we’ve seen in residential real estate.”
Home equity values vary significantly across the country. The highest median home equity values, in Hawaii, Washington, D.C., and California, are more than quadruple those of typical homes found in Illinois, Ohio and Oklahoma.
Reflecting a long run of home-price appreciation, California claims five of the 10 metro areas:
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