Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
706,554-12501
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
7.00%-0.02
Reverse

Seniors now have a collective $7 trillion in home equity

Housing wealth among the senior set reaches record levels

Housing wealth for homeowners 62 and older continues to grow at a steady clip, reaching a record $7.05 trillion in the fourth quarter of 2018.

According to the National Reverse Mortgage Lenders Association, the NRMLA/RiskSpan Reverse Mortgage Market Index revealed that housing wealth for the senior set grew 1.4% in the last quarter.

The index rose to 254.10 in Q4 – the highest level since it was established in 2000.

NRMLA said the increase was largely driven by an uptick in senior home values, which rose an estimated 1.3%, and that the growth was offset by a 0.7% increase in senior-held mortgage debt.

Year over year, the index revealed that senior housing wealth grew 6.5% in Q4 2018. This is less than the 8.4% annual rate of growth seen in 2017, and the 8.2% annual growth in 2016, which NRMLA attributes to a nationwide slowdown in home price appreciation.

“Despite slower home price appreciation, we ended 2018 on a high note. The RMMI increased for the 31st consecutive quarter, there are now 23.9 million senior homeowners – the highest number ever – and these homeowners hold a record $7.05 trillion in home equity,” said NRMLA Executive VP Steve Irwin. “For many retirees, a reverse mortgage offers the perfect solution to extract this home equity and put it to good use, so that they can live more financially secure lives.”

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please