Are You Sitting on More Equity Than You Think? A Simple Guide for Homeowners

Many homeowners in Greater Boston don’t always think about home equity as a way to build financial stability, even though many have owned their homes for decades. Since 40.3% of U.S. homeowners now own their homes outright, more local homeowners are discovering they have more equity than they realized.

 

In places like Boston, Cambridge, Somerville, Jamaica Plain, Roslindale, and Hyde Park, owning a home for many years has helped people build real wealth. As home values have risen and mortgages have been paid down, many homeowners are in a better financial position than they might think.

 

The rise in mortgage-free homeowners shows just how much equity longtime owners in Massachusetts have built up over the years.

 

This also gives current homeowners with a mortgage in Greater Boston a helpful way to see how they compare today.

Home equity is simply the difference between what your home is worth now and what you still owe on your mortgage.

 

For example, if your home in Jamaica Plain could sell for $600,000 and you owe $200,000 on your mortgage, your equity would be $400,000.

 

Equity grows over time. As home values in the Boston area go up and you pay down your mortgage, the difference between what you owe and what your home is worth gets bigger. If you bought your home years ago or refinanced at a lower rate, this growth adds up even more.

 

This is why many Greater Boston homeowners, especially those who bought before 2015, often have much more equity than they realize. The increase happens quietly and often goes unnoticed until someone checks the latest local market data.

 

A recent look at U.S. Census Bureau data shows that homeowner equity has grown nationwide. These numbers help put things in perspective for Massachusetts homeowners:

Time is a significant factor in building equity.

 

Many people in Boston and nearby suburbs bought their homes 20 to 30 years ago. During that time, they paid down or paid off their mortgages, and home values have steadily gone up, especially in city neighborhoods and close suburbs.

 

Almost two-thirds of homeowners aged 65 and older now own their homes completely. In Greater Boston, this is common in long-established neighborhoods where people have lived for many years.

 

When many homeowners have little or no mortgage debt, the local housing market acts differently.

 

In Greater Boston, fewer people are forced to sell their homes due to financial difficulties. Sellers have more choices about when to sell, how to price their homes, and what to do next. This leads to a more stable market, with fewer urgent sales and more thoughtful decisions.

 

For homeowners, this stability means having more options.

 

Equity isn’t just a number. It gives you control over your choices. You can make decisions about your home based on your lifestyle, family needs, and future plans, without feeling rushed.

Everyone’s situation is unique, but once homeowners know how much equity they have, certain common choices arise. Selling is just one option, and it’s often not the first one people think about.

 

Homeowners in Boston and nearby areas often use their equity in these ways:

Some homeowners use their equity for planning, not just for immediate changes. This might include:

The main point is that having a lot of equity doesn’t mean you have to make a decision right away. It simply gives you more choices.

 

Even though home values have gone up in Greater Boston, many homeowners still don’t realize how much equity they have.

 

This often happens because people rely on old assumptions. Some homeowners still think about what they paid years ago, while others believe market changes don’t affect their own street or neighborhood.

 

But in reality, changes in the Boston market can quietly add or subtract significant value over time. If you don’t look at recent sales and local data, it’s easy to miss how much things have changed.

You don’t have to be planning to sell your home to find out how much equity you have.

 

Knowing your equity helps you make better decisions, plan without stress, and understand your options before you need to act.

 

If you’re curious about your equity and what it could mean for your future, we’re happy to review it with you using real data from Greater Boston.

 

Sometimes, the best step is just to know what you already have.

 

Home Equity FAQ for Greater Boston Homeowners

How do I find out how much equity I have in my Boston home?

Start with your home’s current market value based on recent sales in your neighborhood, then subtract your remaining mortgage balance. An equity review using local Boston-area data is more accurate than online estimates.

Has home equity increased in neighborhoods like Jamaica Plain and Roslindale?

Yes. Many Greater Boston neighborhoods have seen long-term price appreciation, especially for homeowners who bought before 2018. Even modest annual growth adds up over time.

Do I need to sell my home to use my equity?

No. Selling is just one option. Some homeowners use equity for renovations, to purchase another property, or for long-term planning while staying in their current home.

Is home equity the same across all Boston neighborhoods?

Not at all. Equity levels vary widely by neighborhood, property type, and purchase year. A condo in Somerville and a single-family home in Hyde Park can show very different equity profiles.

When is the right time to review my home equity?

Any time you are thinking about future housing plans, renovations, retirement, or helping family. You do not need to be actively selling to benefit from understanding your equity.