In 2025, U.S. home prices have risen faster than mortgage balances, increasing home equity for many. Median home prices reached $349,225, up $100,000 since 2020, while average mortgage balances grew 24% to $256,803. States like California and Hawaii have the highest home values, with significant equity gaps. Rising fixed-rate mortgages help equity growth, but affordability challenges persist due to higher interest rates and housing supply shortages.