The $11 Trillion Problem No One Is Talking About

Why Homeowners Are “House Rich, Cash Poor”  and What It Means for Sellers and Buyers in Park City.

A new report from Cotality highlights something that perfectly explains today’s real estate market:

Homeowners have more wealth than ever. But they’re not using it.

And that disconnect is quietly shaping housing markets across the country, including right here in Park City.

Let’s break it down in real terms.

The Big Picture: Americans Are Sitting on a Mountain of Equity

Right now, U.S. homeowners are holding an estimated $11 trillion in tappable home equity.
That’s an extraordinary amount of wealth.

But here’s the twist:

Only about 3% of that equity was actually used last year.

In other words, the money is there…
It’s just sitting on the sidelines.

The average homeowner today has roughly:

• $300,000 in equity

• Enough equity, in many cases, to pay off other debts

• More wealth on paper than at any time in history

Yet many still feel financially tight.

That’s the paradox.

House rich. Cash poor.

Why This Is Happening: The “Golden Handcuffs” Effect

One of the biggest reasons homeowners aren’t tapping their equity or moving is simple:

They don’t want to give up their low mortgage rate.

Millions of homeowners locked in rates around 3% to 4% during the pandemic.
Today, borrowing costs are dramatically higher.

So even if someone has hundreds of thousands of dollars in equity, moving or refinancing can feel like a financial step backward.

Economists call this:

The lock-in effect.

And it’s slowing the entire housing market.

Many homeowners are choosing to stay put rather than trade a low payment for a higher one, which is one reason housing transactions remain below pre-pandemic levels.

The Real Mismatch: The People With Equity Aren’t the Ones Who Need It

Another key insight from the report:

Home equity is concentrated among older, wealthier households.

Meanwhile:

• Younger buyers often have little or no equity

• First-time buyers face the highest affordability pressure

• Many households who need liquidity don’t have access to it

That creates a generational and financial imbalance in the housing market.

And it’s one of the reasons inventory has stayed tight for years.

What This Means for the Housing Market

This isn’t a crash story.
It’s a gridlock story.

Here’s what this structural mismatch is doing to the market:

1) Fewer Homes Are Coming to Market

People who could sell…
Aren’t.

Not because they don’t want to.

Because the math doesn’t make sense.

That keeps inventory lower than normal and slows the pace of transactions.

2) Homes Are Taking Longer to Sell

We’re seeing this across the country.

And yes, we’re seeing it locally.

The market hasn’t collapsed.

It’s simply more selective.

Buyers are cautious.
Sellers are holding firm.
Deals take longer to come together.

3) Price Sensitivity Has Increased

When buyers know homeowners have equity cushions, they negotiate harder.

They’re not desperate.

They’re patient.

And that changes the dynamic of every transaction.

What This Means for Sellers in Park City

Here’s the honest truth:

Equity alone does not sell a house.

Strategy does.

In today’s market:

• Pricing matters more than ever

• Presentation matters more than ever

• Timing matters more than ever

Because buyers have options.

And when homes are priced too aggressively, they sit.

Not forever.
But long enough to become stale.

What This Means for Buyers

This environment creates opportunity.

Not everywhere.

But in very specific situations.

Especially when:

• A seller needs to move

• A property has been sitting

• Pricing becomes more realistic

That’s where leverage shows up.

And that’s where smart buyers win.

The Local Reality in Park City

Park City isn’t immune to national trends.

But it does behave differently.

Here’s what I’m seeing on the ground:

• Luxury inventory is growing

• Some homes are sitting longer

• Well-priced homes are still moving

• Buyers are more selective than they were two years ago

This is not a downturn.

It’s a reset.

And resets reward strategy.

The Bottom Line

The housing market today isn’t broken.

It’s constrained.

We have:

• More homeowner wealth than ever

• Less mobility than ever

• A market that moves slower, not weaker

And understanding that difference is what separates reactive decisions from smart ones.

If you’re thinking about selling, buying, or simply trying to understand what’s really happening in the market here in Park City, this is the moment to get clear on strategy.

Because in this market:

The opportunity isn’t everywhere.
It’s specific.

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