The Typical Homeowning Family’s House Is Now Worth $375,000, Up 6% Since 2022
Your house may be the biggest asset you own, but that doesn't mean you can spend it. Before you count it in your retirement plan, see what selling, borrowing, and carrying it really cost.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
For most retirees, the house is the biggest thing they own. It’s often worth more than the 401(k) and the savings account combined. The latest Federal Reserve data on home values tells the typical owner what portion of their wealth is tied up in their home and how hard that wealth is to use.
What the Typical Owner’s House Is Worth Now
The Federal Reserve’s Survey of Consumer Finances reports that the median home value among families who own rose to $375,000 in 2025, up from $353,700 in 2022. That’s a 6% gain. “Median” just means the middle house. Line up every owner’s home from cheapest to priciest, and the one in the middle is the median. It’s a better guide than an average, which a few mansions can drag up.
The median homeowner had $230,000 in home equity, up from $218,900 in 2022. That’s the more useful figure when considering how much wealth a house holds. Both measures show the middle homeowner rather than the average, pulled higher by expensive properties.
Why Values Rose While Fewer Families Own
Homeownership moved in the opposite direction. The homeownership rate slipped to 65.6% in 2025 from 66.1% in 2022. Ownership is down, yet owners’ houses got more valuable. Borrowing costs explain a lot of it. The 10-year Treasury yield, which mortgage rates tend to follow, was at 4.84% on November 5.
High rates keep owners with cheap old mortgages from moving. Existing home sales ran at an annualized pace of just 3.99 million in September, a level considered soft. When few homes are listed, the ones that are tend to hold their price.
That support is leveling off, though. The Case-Shiller national index came in at 336.7 in August, slightly below July’s peak. Prices are flat right now, and nothing in the data promises they’ll keep climbing.
Your Local Market May Tell a Different Story
A national median can hide big swings. Federal Housing Finance Agency data shows prices in Anniston-Oxford, Alabama, rose 12% in the year through mid-2026, while Brunswick-St. Simons, Georgia, fell 4.9%. If you bought in a hot market at the peak, the Fed’s 6% gain may not describe your house at all.
How Retirees Can Tap the Equity
Older households hold most of this wealth. The Fed’s Distributional Financial Accounts show households headed by people ages 55 to 69 own 35.1% of all owner-occupied real estate, and those 70 and older own 27.3%. The 70-plus group carries only 11% of mortgage debt, so many of those houses are paid off.
There are three main ways to turn that equity into cash, and we’ve covered each in depth. Downsizing frees up the gap between your old home and a cheaper one.
A reverse mortgage lets owners age 62 or older borrow against the house with no monthly payments, though HUD calls these “rising-debt, falling-equity” loans and requires counseling first. A home equity line of credit is a revolving credit line secured by your house, with payments due along the way.
If you sell, taxes matter. The IRS lets you exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, if you owned and lived in the home at least 2 of the last 5 years. Those limits haven’t moved since 1997, as we’ve reported, so longtime owners in pricey areas can owe tax on part of their gain.
Bigger House, Bigger Bills
A rising value has a cost side. Property taxes are usually based on assessed value, so they tend to climb with prices. Insurance premiums follow replacement costs up, too. A house that’s worth more on paper can strain a fixed retirement income each year you keep it.
Wealth You Can’t Spend Directly
Home equity is difficult to spend directly. Home equity only becomes spending money when you sell or borrow, and both cost something: agent fees, moving costs, loan interest, or a shrinking estate. You also still need somewhere to live.
That’s why including your full home value in a retirement plan can overstate what you can safely spend. A conservative plan treats the house as a backup reserve and sizes your withdrawals around your investment accounts.
One Number Worth Checking Tonight
Start with your own house. Look up a realistic estimate of what your house would sell for today, then subtract what you still owe on it. That’s your equity, and it’s the figure that matters. Then ask the follow-up question: what portion of it could you actually get your hands on after taxes, fees, and finding your next place to live? That answer is the figure to use in your retirement plan.
Contact [email protected] for any questions or corrections.
David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
