When was the last time you checked the value of your home? For most people, it’s not something that comes up often. You might glance at online estimates or hear about neighborhood sales, but chances are you don’t have a professional keeping tabs on your home’s value on a regular basis.

And that’s surprising, because your home is probably the single biggest financial asset you own. While it’s easy to think of it just as the place you live, the truth is your property has likely been working hard behind the scenes to build wealth for you—even if you haven’t been paying attention.

As markets shift and headlines grab attention, many homeowners don’t realize just how much their homes have appreciated in value over time. Even if prices have cooled in certain areas, long-term homeowners are still sitting on significant gains. That growth is captured in one powerful concept: home equity.

What Is Home Equity?

Equity is the wealth you’ve built into your home. In simple terms, it’s the difference between what your house is worth today and what you still owe on your mortgage.

You gain equity in two ways:

1. By paying down your loan balance over time.

2. By benefiting from rising property values in the market.

For example, let’s say your house is worth $500,000 today and you still owe $200,000 on your mortgage. That means you have $300,000 in equity.

This isn’t just a hypothetical calculation. According to housing data company Cotality, the average homeowner with a mortgage currently has about $302,000 in equity. That’s a staggering amount of wealth many people don’t even realize they’re holding.

Why You Probably Have More Equity Than You Think

There are two main reasons homeowners are sitting on near-record amounts of equity right now:

1. Significant Home Price Growth

Home prices have been on an incredible run over the last several years. According to the Federal Housing Finance Agency (FHFA), prices nationwide have climbed nearly 54% in the past five years.

Think back to when you purchased your home. If it was three, five, or even ten years ago, chances are your property is worth substantially more today. That appreciation alone has added tens or even hundreds of thousands of dollars in equity to your bottom line.

Some people worry when they hear headlines about prices leveling off or dropping slightly in certain markets. But here’s the reality: even if there are short-term dips, the long-term trajectory of home values has been upward. Unless you purchased your home very recently, you’re likely still ahead—often far ahead—when it comes to equity.

2. Longer Homeownership Tenure

Another factor driving equity growth is that people are staying in their homes longer. The National Association of Realtors (NAR) reports the average homeowner now remains in the same property for about 10 years.

That’s longer than in decades past, and it has big financial implications. Over the course of a decade, not only are you consistently reducing your loan balance, but you’re also riding the wave of appreciation.

The numbers are compelling. According to NAR, “Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”

In other words, simply by living in your home and making your monthly payments, you’ve likely built a six-figure increase in your net worth—without doing anything extra.

What Could You Do with That Equity?

Here’s the exciting part: your equity isn’t just a figure that looks good on paper. It’s a tool you can put to work in different ways, depending on your personal and financial goals.

Buy Your Next Home

Equity can be used as leverage when you’re ready to move. It can provide the down payment for your next property, and in some cases, it might even allow you to purchase a home outright in cash. That kind of buying power can give you an edge in a competitive market.

Renovate Your Current Home

If you love your neighborhood but your home no longer fits your lifestyle, tapping into equity for renovations could be the right move. Updating kitchens, adding extra space, or refreshing outdated areas can improve your day-to-day living while also boosting your property’s value for the future.

Fund a Business or Investment

Equity can also be a way to kick-start other financial dreams. Maybe you’ve always wanted to launch a business, scale an existing one, or invest in something new. Equity can provide the startup capital for equipment, marketing, or other expenses that help grow your income.

Build Security or Flexibility

Equity can serve as a safety net for major life changes. Whether it’s helping to cover education costs, consolidating debt, or planning for retirement, the wealth tied up in your home can be strategically unlocked to give you options you wouldn’t otherwise have.

Why It Matters to Check Your Home’s Value Regularly

Many homeowners don’t realize just how much their equity has grown because they haven’t had an updated valuation in years. Think of it this way: you wouldn’t ignore your retirement accounts or go years without checking your credit score. Your home deserves the same level of attention.

Regular check-ins on your home’s value can help you:

• Stay aware of your net worth.

• Make smarter decisions about refinancing, selling, or upgrading.

• Understand how much leverage you have if opportunities or challenges come up.

And while online estimates can provide a ballpark figure, a professional evaluation from a local real estate agent gives you a clearer picture of your home’s true market value.

The Bottom Line

Your home is more than just a place to live—it’s one of the most powerful financial tools you own. Chances are, it’s worth more than you think, and your equity is at or near record highs.

The key is to know where you stand. If you’ve been in your home for several years, you’ve likely built a significant amount of wealth that you could use to move forward on your next big goal—whether that’s a new home, a renovation, or even starting a business.

So, don’t let your home’s value be something you check only once in a blue moon. Take the time to run the numbers, connect with a trusted local agent, and find out exactly how much hidden wealth is sitting in your property.

Because at the end of the day, your house isn’t just where you live—it’s a cornerstone of your financial future.