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Housing affordability has become a pressing issue in America — with studies suggesting that buyers now need a six-figure salary to comfortably cover the mortgage on a typical home. Yet millions of Americans already own their homes outright.
According to Fortune, citing a recently published Goldman Sachs note, the share of U.S. homeowners without a mortgage rose from 33% in 2010 to 40% in 2023. Assuming there are 86 million homes nationwide, the outlet estimates more than 30 million are now owned free and clear.
As more Americans pay off their homes, equity continues to build. ICE Mortgage Technology estimated that heading into the second quarter of 2025 U.S. mortgage borrowers held $11.5 trillion in “tappable” home equity — or equity available for borrowing while maintaining at least a 20% cushion.
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While it’s possible to access that equity through loans or lines of credit, Goldman Sachs notes that homeowners today are far less eager to tap into it than they were in the early 2000s.
“Rather, borrowers have focused on paying down their mortgages and owning their homes outright,” said Goldman Sachs analyst Arun Manohar, per Fortune.
A major driver of this growing equity is the sharp increase in home values. Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has climbed more than 50%.
That may be good news for existing homeowners — but for first-time buyers, the picture is far more challenging, especially with mortgage rates still elevated.
According to the National Association of Realtors, the share of first-time home buyers in the U.S. fell to just 24% in 2024 — a record low — down from 32% a year prior.
Fortune called the situation both “a warning sign” and a “chicken-and-egg” dilemma — noting that many older homeowners who bought their properties decades ago aren’t downsizing, largely due to fears of today’s higher mortgage rates. With that inventory staying off the market, supply remains tight and prices stay elevated — making it even harder for younger generations to break into homeownership.
Getting on the real estate ladder
So, just how difficult is it to buy a home in America today?
According to Realtor.com, a typical household would need to earn $118,530 annually to afford a median-priced home of $402,500 in the U.S. — more than 50% higher than the current median household income of about $77,700. In pricier states like California, the income requirement can soar even higher: a household would need to earn a whopping $210,557 a year to afford a typical home in the Golden State.
Still, real estate remains a popular path to building wealth.
For one, it’s a classic hedge against inflation. As inflation rises, home values tend to increase as well, reflecting higher costs for materials, labor and land. Rental income often follows suit, providing landlords with a stream of income that can adjust with inflation.
Second, while real estate moves in cycles, it doesn’t require a booming market to deliver returns. Even in a downturn, high-quality, essential properties can continue to generate passive income through rent. In other words, the asset can work for you — regardless of broader market conditions.
The best part? You don’t need to buy a property outright to invest in real estate.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
Become a real estate mogul — starting with $100
Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to gain exposure to America’s real estate market.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.
Tap into the multitrillion-dollar home equity market.
Americans have built substantial wealth through homeownership, but the $35 trillion U.S. home equity market has historically been the exclusive playground of large institutions.
Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Be the landlord of Walmart
If you’ve ever been a landlord, you know how important it is to have reliable tenants.
How do grocery stores sound?
That’s where First National Realty Partners (FNRP) comes in. The platform allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
