If you own a home in Richmond VA, Chesterfield, Henrico, or the surrounding areas, there is a strong chance you are sitting on far more wealth than you realize.

Home equity is not just a number on paper. It is one of the most powerful financial tools homeowners have right now, and in today’s market, it is opening doors many people thought were closed.

Let’s break down what today’s equity levels really look like and how local homeowners are using equity strategically in 2026.

How Much Home Equity Do Homeowners Have Right Now?

Home equity grows in two primary ways.
As you pay down your mortgage.
As home values increase over time.

That combination has created a major equity advantage for today’s homeowners.

According to data from the U.S. Census Bureau and ATTOM, nearly two thirds of homeowners now hold significant equity in their homes.

Current Home Equity Breakdown

1. 39 percent of homeowners own their homes outright

2. 27 percent have at least 50 percent equity

Homeowner Equity Snapshot Chart

This level of equity is historically strong.

According to Cotality, the average homeowner now holds nearly $300,000 in equity.

That is real leverage, especially for homeowners in high demand areas like Richmond VA real estate, where buyer demand and home values continue to remain competitive.

Four Ways Home Equity Can Work for You in Richmond VA

1. Move Into a Home That Better Fits Your Life

Life changes. Your home should too.

Whether you are upsizing, downsizing, relocating within Chesterfield or Henrico, or moving closer to work or family, equity can become your strongest buying advantage.

Many homeowners are using equity to:

1. Make larger down payments

2. Reduce monthly payments

3. Strengthen offers in competitive markets

4. Purchase their next home with minimal financing

For move up buyers, equity often removes the biggest obstacle, affordability.

To explore your options locally, visit https://www.donreidproperties.com

2. Upgrade Your Current Home for Future Value

If moving is not part of your plan, equity can still work for you right where you are.

Strategic updates like kitchens, bathrooms, flooring, and layout improvements can increase both enjoyment and resale value.

The key is knowing which renovations actually pay off in the Richmond housing market.

Before investing, it is important to:

1. Talk with a local real estate professional

2. Prioritize updates buyers in Richmond VA care about

3. Avoid over improving beyond neighborhood value

Local insight makes a measurable difference.

3. Fund Major Life Goals Without Selling

Home equity is also helping homeowners:

1. Start or grow a business

2. Cover education costs

3. Support retirement planning

4. Help family members with a down payment

Many Richmond homeowners are using equity to build long term and generational wealth while staying in their current home.

The right approach depends on your goals, timeline, and financial comfort level.

4. Avoid Foreclosure or Financial Stress

For homeowners facing financial hardship, equity can provide options.

Instead of foreclosure, many sellers are able to:

1. Sell their home

2. Pay off remaining debt

3. Walk away with cash in hand

If this situation feels familiar, timing and guidance matter. A conversation with a local real estate expert can help you understand what options are available.

How Much Equity Is Safe to Use?

Financial professionals often recommend maintaining at least 20 percent equity as a safety cushion.

The good news is that most homeowners today are well above that level.

According to the Intercontinental Exchange, homeowners now hold over $17 trillion in total equity, including more than $11 trillion that is considered accessible while still maintaining healthy equity levels.

This is a much stronger position than what existed prior to the housing downturn of the late 2000s.

Your Next Steps as a Richmond Area Homeowner

If you are considering using your home equity, here is where to start.

Step 1. Request a personalized home equity assessment
Step 2. Review financial options with a trusted advisor
Step 3. Speak with a local real estate expert about timing and strategy

Schedule a private equity consultation with Don Reid Properties

Bottom Line

Your home equity is one of the largest financial assets you own.

Whether your goal is to move, remodel, invest, or gain more flexibility, understanding how to use equity strategically is essential in the Richmond VA housing market.

If you want clarity around what your equity could make possible, let’s talk.

What would you do first if you unlocked the equity in your home today?