Boomers' home equity has repercussions for millennial buyers

  • We already knew that US home equity has risen a ton since rock bottom in 2009.
  • The Fed’s Z.1, B.101 shows aggregate home equity growing from $6.6 trillion to $12.4 trillion by fall 2015.
  • The component of a home appreciating over time is the land that it sits on. Not the house, which only depreciates.

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Last week, the National Reverse Mortgage Lenders Association (NRMLA) reported that American seniors held $5.76 trillion in home equity at the end of the third quarter of 2015 — which, according to NRMLA, “rocketed the NRMLA/RiskSpan Reverse Mortgage Market Index to an all-time high of 200.19,” according to a release sent by the company. Because the source for the data is NRMLA, we should be careful.