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Housing Equity and Net Worth, US and
Lexington-Fayette, KY
Research Division
2011 Report
Net Worth in the US
• What is it?
o Wealth measured as total assets (incl. homes, bank
accounts, etc.) minus total liabilities (incl. mortgages, car
loans, credit cards, other debt)
• What changes it?
o Investment o Ownership of Assets
o Valuation o Acquiring or paying down debt
• Why do we care?
o Wealth impacts consumer decisions regarding
consumption & saving and work & leisure
200
400
600
800
1000
1200
1400
1600
0
1989 ‐ Jan
1989 ‐ Dec
Source: Wall Street Journal
1990 ‐ Nov
1991 ‐ Oct
1992 ‐ Sep
1993 ‐ Aug
1994 ‐ Jul
1995 ‐ Jun
1996 ‐ May
1997 ‐ Apr
1998 ‐ Mar
1999 ‐ Feb
2000 ‐ Jan
2000 ‐ Dec
2001 ‐ Nov
S&P 500 Index
2002 ‐ Oct
2003 ‐ Sep
2004 ‐ Aug
2005 ‐ Jul
2006 ‐ Jun
2007 ‐ May
2008 ‐ Apr
2009 ‐ Mar
2010 ‐ Feb
impacted by the market decline in 2008 but
have since seen a recovery in their portfolios
of renters had stock holdings and were likely
2011 ‐ Jan
62.5 percent of home owners and 26.0 percent
US Median Home Price
$250,000
While home price declines directly
affected the net worth of many
$200,000 homeowners, price stability in
2010 has stabilized net worth
$150,000
$100,000
$50,000
$0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source: National Association of Realtors®
U.S. Typical Net Worth
1998 2001 2004 2007 2010*
$250,000
$200,000
$150,000
Homeowner net worth
ranges from 31 to 46
$100,000 times that of renters
x31 x36 x46 x46 x41
$50,000
$0
Renter Homeowner
Source: Federal Reserve Survey of Consumer Finances/*NAR Calculations
Lexington-Fayette, KY Home Price Trend
Median Existing Home Price
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source: National Association of Realtors®
2010 Homeowner Equity in
Lexington-Fayette, KY
Ownership Tenure (Purchase Year)
Source: National Association of Realtors® Calculations
2010 equity estimated from price change and principal payment
