By what age is it likely that a large percentage of your net worth will consist of equity in your primary residence?

A large percentage of your net worth typically consists of equity in your primary residence by the age of 60 due to several factors related to homeownership and personal finance. As individuals approach this age, they often have benefited from years of mortgage payments, which gradually increase the equity they hold in their home as the principal balance decreases. Additionally, real estate values generally appreciate over time, further enhancing the equity owned.

By around age 60, many individuals are nearing retirement and might have paid down a significant portion of their mortgage, allowing their primary residence to represent a substantial portion of their overall wealth. At this stage, homeowners are often also focused on maximizing their net worth in preparation for retirement, which makes home equity an essential aspect of their financial portfolio.

In contrast, individuals at younger ages, such as 40 or 50, may still have higher outstanding mortgage balances relative to the home's value or have not owned their homes long enough for equity to build significantly. Therefore, while home equity can begin to comprise a considerable part of net worth by 40 or 50, it is at around 60 that it reaches a notable portion for many individuals.