The level of collective home equity among homeowners aged 62 and older increased by approximately $328.5 billion in the first quarter of 2024 to $13.19 trillion, recovering after declining over the past year.
That’s according to the Reverse Mortgage Market Index (RMMI), a measure of senior held home equity maintained by banks. National Reverse Mortgage Association (NRMLA) and data analytics firm risk span.
RMMI increased to 461.28 in the first quarter of 2024, up from the revised level of 449.79 in the fourth quarter of 2023. The value of senior housing rose to $15.5 trillion in the first quarter, a record high, but the pressure was alleviated to some extent by an increase in senior mortgage debt to $2.35 trillion.
“this federal housing administration (FHA) Home Equity Conversion Mortgages have been used by more than 1.3 million people to supplement retirement savings and provide for retirement, allowing older homeowners to safely and sustainably convert their home wealth into liquid assets,” NRMLA President Steve Irwin said in a statement stated in the report.
“Reverse mortgages support daily expenses, home downsizing or modifications to improve senior living, nursing and uncovered health care, health emergencies, pharmaceutical costs, needs of adult children, transportation, and participation to enable seniors to maintain social participation And avoid lonely organizations and activities,” he added.
Older homeowners are the main beneficiaries of rising home prices during the COVID-19 pandemic. In 2011, the overall level of senior equity holdings was approximately US$3 trillion, and in the third quarter of 2021, it exceeded US$10 trillion for the first time. In the first quarter of 2022, this number exceeded $11 trillion.
During the epidemic, the collective wealth of senior housing has accelerated. It surpassed the $9 trillion mark for the first time in the first quarter of 2021, and only three months ago exceeded $8 trillion for the first time. Previously, the figure exceeded US$7 trillion for the first time in the fourth quarter of 2018.
