Is your home earning more money than you? According to a recent analysis by Zillow, most likely, yes, it is.
In 2021, 25 of the 38 largest metro areas in the country saw the median growth in equity outpace the median income, with 11 of those cities seeing equity growth over $110,000 over the course of the year. In fact, in the two years since the beginning of the pandemic, across the US, the average home has seen a 38% appreciation in value.
Here in San Diego, we have seen nearly 49% appreciation since the end of 2019, well ahead of the national average and ahead Los Angeles (33%) and San Francisco (28%). In 2021, the median home equity increased over $150,000, as compared to the median income of just under $60,000.
While this highlights the crucial role home ownership plays in building generational wealth, it also exposes the growing chasm between home owners and renters. Renters are not able to tap into that equity growth that their landlords are enjoying, but are instead forced to shell out more, as rental rates have increased over 17% in San Diego to around $3000 per month.
So far, as we approach the end of the first quarter of 2022, we have already seen between 7-10% appreciation on most homes, as low supply continues to create fierce competition, even as mortgage rates rise. At this rate, your home could be on its way to being the main breadwinner in the family once again.
To read the original Zillow Report, click HERE