from Liberty Street Economics
– this post authored by Andreas Fuster, Eilidh Geddes, and Andrew Haughwout
Housing equity is the primary form of collateral that households use for borrowing. This makes it a potentially important source of consumption funding, especially for younger households. In a previous post we showed that owner’s equity in residential real estate has finally, thanks to increasing home prices, rebounded to and essentially re-attained its 2005 peak level.