US Home Equity Lending Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Home Equity Lending Market Analysis
The US Home Equity Market generated a revenue of over USD 29.31 trillion in the current year and is anticipated to register a CAGR of more than 5% for the forecast period.
The smart choices for US home equity lending are a mortgage and a credit union. There is an increasing need for reliable lenders for consumers' home equity lending in order to prevent scams and get a reasonable rate. Some of the key services offered by credit unions include accepting deposits, managing checking and savings accounts, dispensing credit and debit cards, and providing house loans. There is an increasing preference for credit unions among customers as it offer loans at the cheapest rate on credit products such as mortgages. Hence, such factors are expected to fuel the growth of this segment which, in turn, will drive the US home equity lending market during the forecast period.
The factors that drive the US market for home equity loans include rising home prices, popular home innovations, lower interest payments, and tax deductions when compared to other borrowing methods. The elements that operate as a lucrative potential for the US home equity loans industry include the strong demand for home equity loans and their superiority over alternative borrowing options.
Since the COVID-19 pandemic, the US home equity lending market has undergone a complete transformation. Mortgage applications became more difficult. Home equity loan borrowers limited loan availability and more stringent approval standards as a result of the mortgage lenders' lower risk exposure. Lenders are coping with demand and personnel challenges as a result of the coronavirus outbreak.
US Home Equity Lending Market Trends
Home Equity Lending Market is Being Stimulated By Rising Home Prices
US house prices grew 8.8% in the current year, following an increase of 12.2% in the previous quarter. The cost of purchasing a home increased as a result of higher mortgage rates. However, those significant jumps may level off. While buyers struggle in this challenging market, homeowners are witnessing rising home values. Homeowners are benefiting from greater equity gains as a result of rising home values.
Increasing Share of Homeowner Equity in Real Estate Property of US is Driving the Market
Home equity value is calculated by subtracting the value of the 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. Homeowner equity as a percentage of household real estate in the United States amounted to 71.23 percent in 2022 and has been increasing steadily.
There is an increase in technology-savvy homeowners in the market, so there is more need for digitalization in the process of home equity loans. There is an increase in investments in the automation of mortgages. Data and technology solutions are increasingly used by lenders to survive and grow in the market. In addition, digitalization in the loan origination process helps technology henceforth, reducing friction in the process. The use of artificial intelligence is increasingly adopted by home equity loan originators to give a personal touch and personal advice. Henceforth, advancements in technology provide an easy way for clients to take loans. Technology facilitates home equity closings as well, through tools such as EXOS Close, an app that enables the borrower to self-schedule their closing by gaining direct access to signing agents' availability, and remote and hybrid signing options. Each of these helps lenders create a differentiated customer experience that includes getting to the closing table faster.
US Home Equity Lending Industry Overview
In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid to large companies are increasing their market presence by securing new contracts and tapping new markets. The report covers prominent players operating in the US Home Equity Lending Market. Some of the major players include Bank of America, Flagstar Bank, PenFed Credit Union, Chase Bank, and US Bank.
US Home Equity Lending Market Leaders
Bank of America
Flagstar Bank
PenFed Credit Union
Chase Bank
US Bank
*Disclaimer: Major Players sorted in no particular order
US Home Equity Lending Market News
- August 2023: Spring EQ, a provider of home equity financing solutions, has entered into a definitive agreement to be acquired by an affiliate of Cerberus Capital Management, L.P., a global leader in alternative investing. The main aim of the partnership is to support Spring EQ's mission to deliver offerings and expand its leadership in the home equity financing market.
- June 2023: VIU by HUB, a digital insurance brokerage platform subsidiary of Hub International Limited, has entered into a new partnership with Unison, a home equity-sharing company. The collaboration will allow homeowners to compare insurance coverage quotes from various carriers and receive expert advice throughout the process.
US Home Equity Lending Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Home Renovation Trends are Driving the Market
4.3 Market Restraints
4.3.1 Regulatory Changes are Restraining the Market
4.4 Market Opportunities
4.4.1 Digital Innovation will Create Opportunities to New Entrants
4.4.2 Refinancing Will Create Opportunities to New Entrants
4.5 Insights on Various Regulatory Trends
4.6 Insights on impact of technology and innovation
4.7 Industry Attractiveness - Porters' Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Fixed rate loan
5.1.2 Home equity lines of credit
5.2 By Service Providers
5.2.1 Commercial banks
5.2.2 Financial Institutions
5.2.3 Credit Unions
5.2.4 Other creditors
5.3 By Mode
5.3.1 Online
5.3.2 Offline
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Bank of America
6.2.2 Flagstar Bank
6.2.3 PenFed Credit Union
6.2.4 Chase Bank
6.2.5 US Bank
6.2.6 PNC Bank
6.2.7 Navy Federal
6.2.8 NBKC Bank
6.2.9 Creditaid
6.2.10 Citizens Commerce Bank*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
US Home Equity Lending Industry Segmentation
Home equity loans are a particular kind of loan where the borrower pledges the value of their house as security. This report aims to offer a detailed analysis of the US Home Equity Lending Market. It concentrates on the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it focuses on the key players and the competitive landscape in the market. US Home Equity lending Market is segmented by type (Fixed rate loans and home equity lines of credit), by Service Providers (Commercial banks, Financial Institutions, Credit Unions, and other creditors), and by Mode (Online and Offline). The report offers market size and forecast in value (USD billion) for all the above segments.
| By Type | |
| Fixed rate loan | |
| Home equity lines of credit |
| By Service Providers | |
| Commercial banks | |
| Financial Institutions | |
| Credit Unions | |
| Other creditors |
| By Mode | |
| Online | |
| Offline |
US Home Equity Lending Market Research FAQs
What is the current US Home Equity Lending Market size?
The US Home Equity Lending Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in US Home Equity Lending Market?
Bank of America, Flagstar Bank, PenFed Credit Union, Chase Bank and US Bank are the major companies operating in the US Home Equity Lending Market.
What years does this US Home Equity Lending Market cover?
The report covers the US Home Equity Lending Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Home Equity Lending Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Home Equity Lending Industry Report
Statistics for the 2024 US Home Equity Lending market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Home Equity Lending analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
