Experian: Market Sees Both Challenges, Optimism

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Experian, Costa Mesa, Calif., released its 2026 State of the U.S. Housing Market Report, finding a market “in flux” and identifying a number of key trends.

In the current environment–with some pent-up demand unlocked amid rate moderation at the end of 2025–first mortgages are selective and second liens and HELOCs are expanding.

Affordability remains a challenge. In a recent survey, Experian found that 67% of consumers said home prices and 59% said funds for a down payment were some of their biggest barriers to homeownership.

Rising property taxes, insurance premiums and homeowners association fees are also a concern and can vary widely by state or area. For example, fifteen states now see average HOA fees over $200 a month.

Many homeowners are staying put, leading to plenty of tappable equity and homeowners seeking HELOCs.

Experian found that older borrowers are using less of their HELOC equity than younger borrowers–only 36% of older borrowers fall into the 61-100% utilization range compared with 50% of younger borrowers.

Also in HELOC trends: Fintechs have seen a 140.2% surge in HELOC originations between 2023-2025. That compares with a 20% bump for regional banks, 8.3% rise for credit unions and 7.4% increase for large banks and card issuers.  

The market may see more optimism among some segments in coming years, too. Nearly half of current U.S. renters (47%) plan to buy a home in the next four years, and 67% plan to over the next eight years.

Forty-eight percent of Gen Z and 50% of millennial non-homeowners say they’ll be in a position to buy a home by 2029.