Real Estate

Overview

Real estate is an asset class that includes land or any buildings, whether residential, commercial, or public. A significant portion of the median American household’s net worth is often tied up in real estate. Roughly 66% of US households own real estate, and for the typical American homeowner, real estate makes up roughly half of their household’s net worth.

Most of these homeowners (about 74%, as of 2024) use a mortgage to finance their homes rather than paying for them in cash. The real estate industry encompasses a wide range of professionals, from house flippers to real estate agents. Real estate investment firms handle complex, large-scale projects such as commercial developments, and also partner with large corporate developers and investors.

The US housing market alone was worth a hefty sum of $55T as of September 2025. For context, the entire US stock market is worth roughly $62.2T.

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