Home Equity at Decade-High Level at Close of 2015

Washington, DC, March 14, 2016—U.S. households closed 2015 with home equity at the highest level in a decade, according to the Wall Street Journal. This a housing-recovery milestone could shield Americans pinched by financial-market volatility early this year.

The net worth of U.S. households and nonprofits reached a record $86.8 trillion in Q4, according to a report from the Federal Reserve. Wealth climbed by more than $1.6 trillion from the Q3.

The value of real estate climbed to $25 trillion, against $9.5 trillion in mortgages, which works out to home equity of more than $15 trillion. While the report groups households and nonprofits together, the vast majority of this real estate is held by households.