Without a reversal of this trend, empty-nesters will not make a significant contribution to central city revival. The Surge in Household Wealth Thanks to the stock market boom and renewed house price appreciation, average household net worth has risen dramatically. Homeowners have capitalized on soaring prices when they sell. Although stock prices have appreciated faster than home prices, home equity remains the cornerstone of wealth for most families. Furthermore, the top one percent of stockholders held fully 37 percent of stock wealth, while the top one percent of homeowners held just 13 percent of home equity.
Home equity remains an especially important source of wealth for low-income and minority households.
For half of black homeowners, home equity accounted for 57 percent or more of their net wealth. For half of Hispanic homeowners, the share was even higher at 71 percent or more. Among half of white homeowners, though, the contribution of home equity to wealth was 40 percent or less.