Answer extracted from The Diary Of A CEO with Steven Bartlett podcast — listen to the full episode below.
How Much Home Equity Exists in the United States Right Now?
There is now $34 trillion in home equity in America, a figure that has surged 90% since before COVID, according to a Wall Street Journal article. This represents the accumulated wealth stored in residential property across the nation.
This staggering number reflects the scale of residential wealth creation in the United States. As David Bach explains in the episode, home equity stands as one of the two primary sources of wealth creation in the United States, alongside the stock market.
The Magnitude of Residential Wealth Since COVID
The 90% increase in home equity since before the pandemic underscores how dramatically housing values have climbed in the past few years. This growth has been uneven across markets—certain U.S. cities have seen home prices double or even triple, while others have experienced more modest appreciation, yet the overall $34 trillion figure captures this nationwide surge in residential property value.
Understanding this $34 trillion context matters because it demonstrates why homeownership remains central to American wealth building. The sheer volume of equity locked in homes across the nation shows that property appreciation, not stock gains alone, continues to be the dominant vehicle for building personal net worth, a point emphasized throughout this podcast conversation.
"It is an absolute freaking myth that people take this extra money that they could have used to buy a house and they're going to put it in the stock market. They don't do that."
David Bach — Financial Advisor and Author. Bach came out of college in credit card debt with $12,000 owed. He bought his first home by partnering with a best friend, splitting a $12,500 down payment on a $250,000 fixer-upper and renting out bedrooms to cover mortgage payments. He wrote The Automatic Millionaire 20 years ago and has spent the last 30 years launching books globally, starting with Oprah.
If you want to hear Bach's full argument on why homeownership has created generational wealth despite rising interest rates and affordability challenges, the complete episode covers how the average homeowner is worth 40 times more than the average renter, and what specific strategies can accelerate mortgage payoff and maximize equity gains.
See also
What is the wealth gap between homeowners and renters in America?
Homeowners in America are worth 40 times more than renters. The average homeowner in America today is worth over $400,000, while the average renter is worth significantly less.
What major health and mental health crisis is affecting the current generation of teenagers in the United States?
We have the sickest young generation in the world's history. 58% of teenage girls report being persistently sad. 32% have thought of killing themselves.
What is the relationship between struggling and adversity in developing grit and cognitive resilience in the brain?
You develop grit through struggle. The way that the brain matures is through struggling. You have to learn from your mistakes to build cognitive resilience.