The equity that owners have in their homes is an important share of the net worth of American families. For most of the last 25 years, homeowners’ equity has constituted about a quarter of total household wealth,about as much as their ownership of stocks (including the amounts in retirement accounts and mutual funds), and more than the value of unincorporated businesses and commercial and rental real estate combined.

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A woman walks past a television screen showing a news broadcast of a North Korean military parade showcasing a record number of nuclear and intercontinental ballistic missiles in Seoul on February 9, 2023. (Jung Yeon-je/AFP via Getty Images)