Why 40% of Homeowners Are Mortgage-Free — And What It Means for Virginia Beach Homeowners

Are You Sitting on More Equity Than You Think?

Short answer: Nearly 4 in 10 U.S. homeowners now own their homes outright — and Virginia Beach homeowners may be holding more untapped wealth than they realize.

Rising mortgage-free ownership is reshaping the financial landscape across America, especially in markets like Virginia Beach and Hampton Roads, where long-term ownership and property appreciation have quietly built significant homeowner wealth.

Understanding your home equity — and how it compares locally — can help you make smarter financial and housing decisions in the years ahead.

What “Home Equity” Really Means (In Plain English)

Home equity is simply the difference between what your home is worth today and what you still owe on your mortgage.

Example:
If your Virginia Beach home could sell for $600,000 and your remaining mortgage is $200,000, you have $400,000 in equity.

This value builds gradually — through mortgage payments, appreciation, and time. Many homeowners who bought in the early 2000s or refinanced during the low-rate years now hold substantial equity without realizing it.

The Rise in Mortgage-Free Homeownership

According to U.S. Census Bureau data (via Fast Company and ResiClub):

• 40.3% of U.S. homeowners are now mortgage-free

• Up from 39.8% in 2023

• Up from 32.8% in 2010

Time plays the biggest role. Homeowners who purchased 20–30 years ago — or refinanced during historically low interest rates — have largely paid off their loans. Among Americans 65 and older, almost two-thirds now own their homes outright.

In Virginia Beach, where many residents have lived in their homes for decades, this national trend feels even more relevant. According to local MLS data, the average homeowner tenure in Hampton Roads now exceeds 11 years, which means many households have accumulated substantial equity.

What This Means for Virginia Beach’s Housing Market

When a large share of homeowners carry little or no mortgage debt, the local housing market behaves differently:

• Stability increases. Fewer homeowners are forced to sell under financial pressure.

• Pricing becomes more patient. Sellers can wait for the right offer rather than rushing.

• Inventory stays tight. With less debt, many homeowners choose to hold onto their properties longer.

For individual homeowners, this translates to one major benefit — flexibility. Equity gives you the freedom to make decisions on your own terms.

Smart Ways Virginia Beach Homeowners Use Their Equity

Equity isn’t just wealth on paper — it’s an opportunity to build long-term stability or pursue new goals. Homeowners in Virginia Beach commonly use their equity to:

• Downsize to a smaller home or condo near the coast and free up cash.

• Purchase an investment property while keeping their current residence.

• Renovate or update kitchens, bathrooms, or outdoor spaces instead of moving.

• Age in place, making accessibility or safety upgrades for the future.

• Support family, such as helping children with college or a first-time home purchase.

Other homeowners take a strategic approach:

• Request a personalized equity review from a local expert.

• Explore HELOCs or home equity loans for improvements or debt consolidation.

• Consult financial or tax professionals to align equity use with long-term planning.

A Quick Reality Check: Most People Underestimate Their Equity

Many Virginia Beach homeowners underestimate their equity because:

• They haven’t reviewed their home’s value recently.

• They still think in terms of their original purchase price.

• They assume market changes don’t impact their specific neighborhood.

In reality, local home values in Virginia Beach have increased over 35% since 2019 (source: Hampton Roads REALTORS® Association, Redfin). Even moderate appreciation can add tens or hundreds of thousands of dollars in equity over time.

That’s why a quick home equity report or local value review can reveal much more than you expect.

A Simple Next Step

You don’t have to be planning a sale to understand your equity. Knowing where you stand helps you make confident, pressure-free decisions.

If you’re curious how much equity you’ve built — or how to put it to work — request a personalized Virginia Beach Home Equity Review. We’ll use current Hampton Roads market data and show you what your property is truly worth today.

Sometimes, the smartest financial move isn’t buying or selling — it’s understanding what you already own.

FAQ

Q: How do I calculate my home equity?
Subtract your remaining mortgage balance from your home’s current estimated value. Local real estate professionals can provide a more accurate market analysis.

Q: What’s the best way to use home equity in Virginia Beach?
Common uses include renovations, downsizing, or purchasing an investment property. A HELOC or refinance may be worth exploring with a local lender.

Q: Does being mortgage-free affect my property taxes?
No — taxes are based on assessed value, not your loan balance. However, your equity position can influence financial planning and retirement decisions.

Thinking about making Virginia Beach your home? Explore local neighborhoods, discover the latest listings, or get a free home valuation to see what your home could be worth in today’s market. Call me at 757-703-1590 or DM me on Instagram @virginiabeachwithmegan.

Written by Megan Luker, REALTOR® | Virginia Beach Military Relocation Expert, Navy Wife & Mom
Licensed REALTOR® in the Commonwealth of VA at ΓEA⅃ Broker, LLC
📱 757-703-1590 (direct) | ☎️ 855-450-0442 (office)
📍 1765 Greensboro Station Place, 900 McLean, VA 22102
📧 megan@lukerativegroup.com