The home-based "wealth effect" has earned millions of home owners thousands of dollars that are likely to see them well through the recession -- and perhaps ease the recessions' impact on the nation.

According to the "Home Wealth Effect Survey," a report recently issued by the National Association of Realtors, the typical homeowner now has $50,000 in home equity -- $100,000 for households earning more than $75,000. Baby boomers, aged 50 or older, have still more money on the house -- $80,000. In some California and New England areas, home-earned equity is still more -- three, four times as much and higher.

While many home owners use that equity to move up to a larger home or buy a second home, according to NAR, others bank it, use it to invest and to pay off debts, but all of it amounts to kind of consumer spending that helps keep the economy churning.

"Homeowners use their home equity to get cash for emergencies as well as the purchase of big-ticket items," said NAR's chief economist Dr. David Lereah.

As much as two thirds of the gross domestic product -- a measure of all the goods and services produced in the United States -- is due to consumer spending, according to the U.S. Department of Commerce.

NAR says the buildup of home equity provides Americans with a financial cushion they might not otherwise have to help brace them against economic downturn. Stock market investments have not fared nearly as well in since 2000.

Speaking in Wyoming in late August, Alan Greenspan, Chairman of the Federal Reserve Board, said that "over the past year and a half home values have appreciated, whereas equity values have contracted significantly."

"At the time, Mr. Greenspan theorized that the wealth effect of homeownership was offsetting some of the losses on Wall Street in the overall economy -- this survey shows Mr. Greenspan is right," Lereah said.

Also, during the last recession, home owners didn't have the added financial benefit of tax-free income of up to $500,000 for a married couple and $250,000 for individual owners on the sale of their home.

"Homeowners use their home equity to get cash for emergencies as well as the purchase of big-ticket items," said Lereah. "In addition, the capital gains people realize from the sale of their home are a significant source of downpayment funds for most repeat buyers, but are used for other purposes as well," he added.

How much equity do you have in your house?