How Wealthy Is Equity Real Estate? Boston Condos For Sale Ford Realty

How wealthy is Equity Real Estate?

Boston Condos for Sale and Rent

How wealthy is Equity Real Estate?

There are a number of reasons you may be thinking about selling your Boston condo. And as you weigh your options, you may find you’re unsure how you’re going to deal with one thing about today’s housing market – and that’s affordability. If that’s your biggest concern, understanding how much equity you have in your house could help make your decision that much easier. Here are two key factors that have a big impact on your equity.

How Long You’ve Been in Your Home

First up is homeowner tenure. That’s how long homeowners live in a house, on average, before selling or choosing to move. From 1985 to 2009, the average length of time homeowners stayed put was roughly six years.

But according to the National Association of Realtors (NAR), that number has been climbing. Now, the average tenure is 10 years (see graph below):

Here’s why that’s such a big deal. You gain equity as you pay down your home loan and as home prices climb. And when you combine all of your mortgage payments with how much prices have gone up over the span of 10 years, that adds up. So, if you’ve lived in your house for a while now, you may be sitting on a pile of equity.

How Home Prices Appreciate over Time

To help show how much the price appreciation piece adds up, take a look at this data from the Federal Housing Finance Agency (FHFA) (see graph below):

Here’s what this means for you. While home prices vary by area, the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it more than triple in value in that time.

Whether you’re looking to downsize, relocate to a dream destination, or move so you can live closer to friends or loved ones, your equity can be a game changer.

Boston Condos for Sale and the Bottom Line

Connect with a local real estate agent if you want to find out how much equity you’ve built up over the years and how you can use it to buy your next home.

How wealthy is Equity Real Estate?

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How wealthy is Equity Real Estate?

As many of you are aware, Equity Real Estate is a big apartment landlord in Boston. Owning two massive apartment towers near MGH across from Boston’s Beacon Hill.

Equity Residential (EQR)

Equity Residential is a big player in the multifamily real estate business: the company commands a market cap of around $29 billion and has a portfolio of 310 properties consisting of 80,227 apartment units.

The portfolio is geographically diversified, too. Equity Residential has an established presence in Boston, New York, D.C., Seattle, and San Francisco — and is expanding in metros like Denver, Atlanta, Dallas, and Austin.

Just like the other two REITs, Equity Residential is making more money in this inflationary environment.

According to the latest earnings report, Equity Residential’s same-store revenue increased 13.6% year over year in Q2. The company attributed the growth to strong occupancy rates and “continued growth in pricing power.”

The REIT has a quarterly dividend rate of 62.5 cents per share, giving the stock an annual yield of 3.2%.

Mizuho analyst Haendel St. Juste has a ‘buy’ rating on Equity Residential and a price target of $79. Considering that the REIT has climbed quite a bit recently and trades at $77 per share at the moment, it’s approaching that target fast.

Updated: Boston Real Estate Blog 2024