Microblog #48: Housing wealth in 2018

Home Equity is Growing Across the Country. Who Has Access to It?

Home equity – the amount of wealth secured via a home’s current value minus any outstanding debt on the property – remains a useful asset for millions of homeowners across America. But as the market continues to recover from the recession and housing crash 10 years prior, the distribution of home equity looks much different than before.

According to new research from the New York Fed, the tightening of lending standards to lower-income (and younger) borrowers means that housing wealth is increasingly concentrated in older, higher-income households. A troublesome result of this trend is that home equity, a useful source of wealth during harder-hitting times, is now only growing for households who need that cushion the least.


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