Graph and download economic data for Households; Owners' Equity in Real Estate, Level (OEHRENWBSHNO) from Q4 1945 to Q1 2025 about net worth, balance sheet, nonprofit organizations, equity, real estate, Net, households, and USA.

The value of homeowner equity in the United States increased from approximately 8.77 trillion U.S. dollars in 2010 to approximately 29.3 trillion U.S. dollars in 2022. The home equity value is calculated by subtracting the value of remaining mortgage debt from the market value of the real estate property. That means that the value of home equity increases as the debtor pays off the mortgage.

In 2024, the share of homeowner equity in the United States amounted to ***** percent in 2024. This was a substantial increase since the period following the Subprime mortgage crisis when the ratio fell below ** percent. Home equity value is calculated by subtracting the value of remaining mortgage debt from the market value of the real estate property. That means that the ratio share of home equity to real estate property value increases as the debtor pays off the mortgage.

Graph and download economic data for Households; Owners' Equity in Real Estate as a Percentage of Household Real Estate, Level (HOEREPHRE) from Q4 1945 to Q1 2025 about equity, real estate, percent, households, and USA.

This statistic shows the average home equity in the United States in 2012 and 2018, by race. Home equity is the market value of a property minus any outstanding loan balances. In 2018, the average home equity in minority communities amounted to 245,000 U.S. dollars, which was a 265 percent increase from the 2012 figure of 69,000 U.S. dollars.

Borrowing against the increase in home equity by existing homeowners was responsible for a significant fraction of the rise in US household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Instrumental variables estimation shows that homeowners extracted 25 cents for every dollar increase in home equity. Home equity-based borrowing was stronger for younger households and households with low credit scores. The evidence suggests that borrowed funds were used for real outlays. Home equity-based borrowing added $1.25 trillion in household debt from 2002 to 2008, and accounts for at least 39 percent of new defaults from 2006 to 2008. JEL: D14, R31

Graph and download economic data for All Sectors; Total Home Equity Lines of Credit; Asset, Level (BOGZ1FL893065215Q) from Q3 1990 to Q1 2025 about HELOCs, home equity, credits, sector, assets, and USA.

United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks was 4.80000 % Chg. at Annual Rate in January of 2025, according to the United States Federal Reserve. Historically, United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks reached a record high of 51.40000 in October of 1987 and a record low of -16.60000 in October of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

Quarter-end data on the home equity lines of credit (HELOC) chartered bank for residential secured lending with properties in Canada (excluding business loans).

Graph and download economic data for Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, Small Domestically Chartered Commercial Banks (RHESCBW027NBOG) from 1987-06-17 to 2025-06-18 about HELOCs, home equity, revolving, small, real estate, domestic, loans, banks, depository institutions, and USA.

The Canada Home Equity Lending Market Report is Segmented by Type (Fixed Rate Loans and Home Equity Lines of Credit), Service Providers (Commercial Banks, Financial Institutions, Credit Unions, and Other Creditors), and Mode (Online and Offline). The Report Offers Market Sizes and Forecasts in Terms of Value (USD) for all the Above Segments.

Loans: Contracting: Household: Rate: Home Equity: Amapá data was reported at 18.410 % pa in Jan 2025. This records an increase from the previous number of 16.710 % pa for Dec 2024. Loans: Contracting: Household: Rate: Home Equity: Amapá data is updated monthly, averaging 20.270 % pa from Apr 2014 (Median) to Jan 2025, with 77 observations. The data reached an all-time high of 28.650 % pa in Nov 2016 and a record low of 6.800 % pa in Nov 2022. Loans: Contracting: Household: Rate: Home Equity: Amapá data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB079: Loans: Contracting: Household: Rate: Home Equity. [COVID-19-IMPACT]

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Home Equity Lending Market Size 2025-2029

The home equity lending market size is forecast to increase by USD 48.16 billion, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, fueled primarily by the massive increase in home prices and the resulting rise in residential properties with substantial equity. This trend presents a lucrative opportunity for lenders, as homeowners with substantial equity can borrow against their homes to fund various expenses, from home improvements to debt consolidation. However, this market also faces challenges. Lengthy procedures and complex regulatory requirements can hinder the growth of home equity lending, making it essential for lenders to streamline their processes and ensure compliance with evolving regulations.
Additionally, economic uncertainty and potential interest rate fluctuations may impact borrower demand, requiring lenders to adapt their strategies to remain competitive. To capitalize on market opportunities and navigate challenges effectively, lenders must focus on enhancing the borrower experience, leveraging technology to streamline processes, and maintaining a strong regulatory compliance framework.

What will be the Size of the Home Equity Lending Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, shaped by various economic and market dynamics. Fair lending practices remain a crucial aspect, with entities ensuring borrowers' creditworthiness through rigorous risk assessments. Economic conditions, employment history, and credit score are integral components of this evaluation. Mortgage insurance (PMIs) and mortgage-backed securities (MBS) are employed to mitigate risk in the event of default. Verification of income, property value, and consumer protection are also essential elements in the home equity lending process. Housing prices, Homeowners Insurance, and property value are assessed to determine the loan-to-value ratio (LTV) and interest rate risk. Prepayment penalties, closing costs, and loan term are factors that influence borrowers' financial planning and decision-making.

The regulatory environment plays a significant role in shaping market activities. Consumer confidence, financial literacy, and foreclosure prevention initiatives are key areas of focus. real estate market volatility and mortgage rates impact the demand for home equity loans, with cash-out refinancing and debt consolidation being popular applications. Amortization schedules, mortgage broker involvement, and escrow accounts are essential components of the loan origination process. Market volatility and housing market trends continue to unfold, requiring ongoing risk assessment and adaptation.

How is this Home Equity Lending Industry segmented?

The home equity lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Mortgage and credit union
  Commercial banks
  Others


Distribution Channel

  Offline
  Online


Purpose

  Home Improvement
  Debt Consolidation
  Investment


Loan Type

  Fixed-Rate
  Variable-Rate


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The mortgage and credit union segment is estimated to witness significant growth during the forecast period.

In the realm of home equity lending, mortgage and credit unions emerge as trusted partners for consumers. These financial institutions offer various services beyond home loans, including deposit management, checking and savings accounts, and credit and debit cards. By choosing a mortgage or credit union for home equity lending, consumers gain access to human advisors who can guide them through the intricacies of finance. Mortgage and credit unions provide competitive rates on home equity loans, making them an attractive option. Consumer protection is a priority, with fair lending practices and rigorous risk assessment ensuring creditworthiness. Economic conditions, employment history, and credit score are all taken into account during the loan origination process.

Home equity loans can be used for various purposes, such as home improvement projects, debt consolidation, or cash-out refinancing. Consumer confidence plays a role in loan origination, with interest rates influenced by market volatility and economic conditions. Fixed-rate and adjustable-rate loans are available, each with its a

Home equity conversion mortgages (HECM) are a federally insured reverse mortgages which allow homeowners in the United States to withdraw some of the equity in the home that they own. In the financial year ending in September 2024, approximately 20,000 HECMs were granted. Wells Fargo was the leading reverse mortgage provider of all times as of 2024.

United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks was 267.03500 Bil. of U.S. $ in April of 2025, according to the United States Federal Reserve. Historically, United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks reached a record high of 611.05700 in May of 2009 and a record low of 23.74200 in June of 1987. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Real Estate Loans: Residential Real Estate Loans: Revolving Home Equity Loans, All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

The Home Equity Access Scheme (the Scheme) is a voluntary arrangement that allows people of Age Pension age to supplement their retirement income through an Australian Government loan secured against their home or other suitable Australian real estate. Other qualification criteria apply, including residency. Participants can access regular fortnightly payments, capped lump sum advance payments, or both.

Fortnightly loan payments can ‘top up’ any pension payment the person receives to a maximum of 150 per cent of the maximum fortnightly rate of Age Pension. For example, a maximum-rate age pensioner can receive an extra 50 per cent of the pension as a Scheme loan, a non-pensioner can receive the full 150 per cent of the maximum Age Pension rate, and a part pensioner can receive an amount in between. Participants can also access up to two lump sum advances in any 26-fortnight period, to a combined total of no more than 50 per cent of the maximum annual rate of Age Pension. Any lump sum advance will reduce the maximum fortnightly loan amount a participant can receive over the subsequent 26-fortnight period.

A Scheme loan accrues compound interest. Any amount received under the Scheme, and interest accrued, is attributed as a debt secured against real assets nominated by the participant. Voluntary repayments can be made at any time but are not required. Any outstanding amount is recovered on the sale of the secured real estate (unless rolled over to a new property) or from the person’s estate. A No Negative Equity Guarantee limits the recoverable debt to the equity in the property used to secure the loan.

For more information about the Scheme, please visit the Department of Social Services' website at: https://www.dss.gov.au/home-equity-access-scheme

Loans: Contracting: Household: Contracted Value: Home Equity: São Paulo data was reported at 343,525,897.960 BRL in Jan 2025. This records an increase from the previous number of 292,709,025.550 BRL for Dec 2024. Loans: Contracting: Household: Contracted Value: Home Equity: São Paulo data is updated monthly, averaging 127,344,204.215 BRL from Apr 2014 (Median) to Jan 2025, with 130 observations. The data reached an all-time high of 524,846,679.470 BRL in Sep 2024 and a record low of 47,609,176.320 BRL in Feb 2017. Loans: Contracting: Household: Contracted Value: Home Equity: São Paulo data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB057: Loans: Contracting: Household: Contracted Value: Home Equity. [COVID-19-IMPACT]

Loans: Contracting: Household: Contracted Value: Home Equity: Amapá data was reported at 1,235,678.110 BRL in Jan 2025. This records a decrease from the previous number of 2,539,462.810 BRL for Dec 2024. Loans: Contracting: Household: Contracted Value: Home Equity: Amapá data is updated monthly, averaging 243,000.000 BRL from Apr 2014 (Median) to Jan 2025, with 77 observations. The data reached an all-time high of 2,539,462.810 BRL in Dec 2024 and a record low of 23,200.000 BRL in Jul 2016. Loans: Contracting: Household: Contracted Value: Home Equity: Amapá data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB057: Loans: Contracting: Household: Contracted Value: Home Equity. [COVID-19-IMPACT]

Loans: Stock: Household: Operation Risk D or More: Home Equity: Goiás data was reported at 4.470 % in Jan 2025. This records a decrease from the previous number of 4.560 % for Dec 2024. Loans: Stock: Household: Operation Risk D or More: Home Equity: Goiás data is updated monthly, averaging 8.670 % from Apr 2014 (Median) to Jan 2025, with 130 observations. The data reached an all-time high of 14.040 % in Jun 2018 and a record low of 4.470 % in Jan 2025. Loans: Stock: Household: Operation Risk D or More: Home Equity: Goiás data remains active status in CEIC and is reported by Central Bank of Brazil. The data is categorized under Brazil Premium Database’s Monetary – Table BR.KAB128: Loans: Stock: Household: Operation Risk: Home Equity. [COVID-19-IMPACT]

The S&P/Experian second mortgage default index stood at 0.39 as of May 2022, meaning that based on data from the most recent three months, the annualized share of default second mortgages and home equity loans was 0.39 percent. This was higher than the first mortgage default rate for the same period. Although the index rose in 2022, it remained below the levels observed in December 2017, when it spiked at 1.22 percent.