Owners' equity in residential real estate fell to 19.3% in the same quarter. The gap between the two measures has widened to 20.6 percentage points. The Kobeissi Letter highlighted the diverging figures, which come from the Fed's quarterly Financial Accounts report.
Households held $185.65 trillion in net worth over the period. Directly and indirectly held corporate equities accounted for $74.03 trillion of that total. Owners' equity in residential real estate, which is calculated by subtracting mortgage debt from home values, totaled $35.81 trillion.
The divergence traces back to the last bear market. Equity exposure has climbed 12.6 percentage points since the third quarter of 2022. The housing share lost 3.5 points over the same stretch.
Historically, property held the upper hand. Real estate exposure peaked at 24.1% in the third quarter of 2005, one point above equities. "Household wealth has never been this skewed toward equities," the Kobeissi Letter said.
Follow us on X to get the latest news as it happens Market returns explain most of the shift. The Nasdaq Composite closed at a record 27,122.09 on September 21, a gain of 16.7% for the year. The S&P 500 finished the same session at 7,764.70, up 13.4% in 2026.
Housing, meanwhile, has barely moved. The Case-Shiller national home price index rose 1.5% in the year through June. Inflation ran at 3.5% over the same period, leaving home values lower in real terms for the 13th straight month.
Extract — continue reading at the source.
