The Short Answer
Read housing and retirement measures with the right group in mind.
What home equity means
Start with a home's value and subtract the debt secured by it. The amount left is net housing value, often called equity. It is different from cash sitting in a bank.
Read the group label
The reported median net housing value rose from $218,900 to $230,000 in 2025 dollars. These numbers describe families that own a home, not all families.
Think beyond a single asset
A family may have a home and retirement savings while still facing regular bills. Assets show resources; payments and income show another side of the picture.
A useful reading habit
Ask whether a number covers everyone or only the people who hold an asset. The answer can change how you understand a headline.
Frequently asked questions
How do I calculate home equity?
Subtract debt secured by the home from the home’s value. This is a simple balance-sheet calculation.
Does the $230,000 median cover renters?
No. This figure describes families that own a home. It is not the home-equity median for all families.
Can I spend home equity like cash in a bank?
No. Equity is value tied to an asset. Accessing it can require a sale or borrowing, with costs and obligations.
The Long Answer · A deeper look
Net housing value subtracts debt secured by a home from the home’s value. It contributes to net worth but is not a liquid deposit balance. The SCF’s reported median housing equity describes homeowners; households that do not own a home are outside that conditional median. Comparing it with an all-family median without noting the different populations can produce a misleading interpretation.
Accessing housing wealth can involve a transaction such as selling or borrowing, with costs, obligations, and eligibility conditions that this simple identity does not capture. A family’s capacity to pay recurring bills depends on cash flow and available liquidity as well as asset values. The published median should therefore serve as context for questions about housing and retirement resources, rather than a personal borrowing or retirement recommendation.
Federal Reserve Board · 2025 SCF release ↗
Our guide explains the source. Consumer Magazine and NDS did not conduct the official survey.