U.S. homeowners favor home equity and renovations over relocation

U.S. homeowners are increasingly utilizing home equity to fund lifestyle changes rather than relocating. In the first quarter of 2026, homeowners withdrew approximately $47 billion in equity, the highest first-quarter total since 2021. Notably, more than half of these withdrawals came through second liens, such as home equity lines of credit (HELOCs) and home equity loans, marking a shift away from the cash-out refinances that previously dominated the market.

Data from Bank of America indicates that Americans are moving less frequently across all income groups and generations. While Gen Z shows slightly higher mobility compared to two years ago, Millennials have seen the steepest decline in moves. This trend suggests that instead of purchasing new homes, many individuals are opting to renovate their current residences using equity-based financing.

As of mid-2026, total home equity in the United States reached nearly $17 trillion, with approximately $11 trillion considered “tappable” for borrowing. Despite this massive pool of wealth, homeowners remain cautious, withdrawing only a small fraction of available equity each quarter.