According to New York Fed data, homeowners are more likely to tap into Home Equity Lines of Credit (HELOC). In Q1 2026, HELOC balances rose by $12 billion, increasing the total to $446 billion.
Around 43% of Americans renovated their home in the last year and another 33% plan to renovate in the next year. Tapping into this equity allows homeowners to complete necessary renovations such as roof replacements or increase the value of homes with kitchen and bath remodels. This demand continues to debt limits which increased 1.4%.
“Homeowners who purchased before or during the pandemic rate environment have accumulated substantial equity and with purchase activity still constrained by inventory, many are choosing renovation and reinvestment over relocation,” said Liezel Once.
