Home Equity Remains Trapped for Many Homeowners

Homeowners have accumulated record levels of home equity, but $731 billion of equity remains untapped
April 16, 2025

With many homeowners choosing to stay in their homes for longer due to their current low mortgage rates, home equity is at an all-time high. Despite this, roughly 1 in 11 homeowners with mortgages can't actually tap into that equity, according to a recent report from home equity investment company Point. Traditionally, home equity served as a financial safety net. However, this has changed due to persistently high interest rates and the rise of gig work, which can sometimes lead to unstable income and credit issues. As a result, about 4.6 million of the 52 million mortgage holders face credit-related barriers that prevent them from accessing an estimated $731 billion in home equity.

The share of homeowners with a mortgage who likely experienced an adverse credit shock is very similar across regions of the country. However, there are slight differences: 8.9% in the Northeast, 9.0% in the South, 9.1% in the Midwest, and 8.9% in the West. By region, that amounts to a total “locked in” home equity of $149 billion in the Northeast, $247 billion in the South, $121 billion in the Midwest, and $284 billion in the West. Read more

 

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