U.S. home equity and HELOC usage trends

U.S. homeowners are increasingly utilizing home equity to fund lifestyle changes and renovations rather than relocating. In the first quarter of 2026, equity withdrawals reached approximately $47 billion, the highest first-quarter total since 2021. A significant portion of these withdrawals—more than half—occurred through second liens, such as home equity lines of credit (HELOCs) and home equity loans, rather than traditional cash-out refinances.

Data indicates a decline in residential mobility across most income groups and generations, with Millennials experiencing the steepest decline. While total U.S. home equity reached nearly $17 trillion by mid-2026, homeowners have remained cautious, withdrawing only a small fraction of the estimated $11 trillion in “tappable” equity.

In contrast to owner-occupants, real estate investors utilize HELOCs on a much larger scale. Analysis of 2025 data shows that while investment property HELOCs represent only about 2.27% of total originations, the average credit line for investment properties was $384,000, significantly higher than the $146,000 average for owner-occupied properties. This gap in loan size has remained consistent since 2022.