U.S. Household Real Estate Value Falls From Record High

The total value of U.S. household real estate took a hit in the third quarter but remains elevated, according to the latest data from the Federal Reserve.

The aggregate market value of all U.S. homes owned by those living in them dropped $361 billion to just over $48 trillion in the third quarter of 2025, though that number remains elevated compared with 2024, according to the most recent release of the Federal Reserve Z.1 Financial Accounts.

Owners' equity in real estate as a percentage of household real estate fell to 71.6%, a slight decline from the 72% of the second quarter of 2025 and about the same as where it was in the first quarter of the year, the data shows.

Realtor.com® senior economist Jake Krimmel cited a small quarterly drop in the Case-Shiller Home Price Index for the decline. He expects aggregate real estate values to remain about the same this year, with 2.2% annual home price gains but a slight tick down in the homeownership rate.

That's slightly above 2025's 2% estimated home price increase, but the expected 2026 price gain is forecast to be outpaced by inflation, meaning real home prices could mark a slight decline, according to Realtor.com's 2026 Housing Forecast.

"We forecast 2.2% home price gains but the homeownership rate to tick slightly down," Krimmel said. "In total, real estate values will be steady in 2026, but at the local level home values often diverge from national trends."

The forecast expects existing sales to grow about 1.7% to 4.13 million, with a 9% recovery of for-sale inventory that could help drive home sales above the 30-year low they are expected to record for 2025.

Meanwhile, household debt increased 4.1% in the third quarter, an increase from the 3.9% jump in the previous quarter. Mortgage debt, specifically, saw a $108 billion spike in the third quarter of 2025.