Homeowners 62 and older are feeling richer thanks to homeownership. Senior housing wealth grew by 0.5%, or $32 billion, in the second quarter, on top of a cumulative $7.17 trillion reached in the first quarter of 2019, the National Reverse Mortgage Lenders Association reports.
The increase in senior homeowners’ wealth was mainly driven by an increase in home values.
“Many retired and soon-to-be-retired Americans lack financial assets for a comfortable retirement, yet the most commonly held and valuable asset for most of them is their home,” says Steve Irwin, executive vice president of the National Reverse Mortgage Lenders Association. “Responsible use of home equity may be the best option that ensures they have food, medicine, and other basics for a comfortable retirement.”
Rising home prices are helping to make more homeowners accumulate home wealth at a faster rate. Overall, U.S. homeowners of all ages with a mortgage have seen their equity rise to an all-time high in the first half of 2019, increasing by 4.8% year over year, according to CoreLogic’s recent Home Equity Report. The average homeowner has gained $4,900 in home equity between the second quarter of 2018 and the second quarter of this year, according to the report.
