TransUnion: Tappable Equity Continues to Grow

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TransUnion, Chicago, reported total tappable home equity nationwide was up 3% in Q1 to $21.6 trillion.

Almost 86 million homeowners have meaningful equity available–homeowners with equity hold a median of $277,000. About 6.5 million hold more than $1 million in equity.

The average amount of tappable equity varies by state, but is highest in California, Texas and Florida.

The total amount of home equity extracted increased 21.5% year-over-year.

Home equity originations increased 15.9% year-over-year. HELOC originations rose 20% year-over-year to 322,000, above pre-pandemic benchmarks. HELoan originations were up 5% year-over-year to 301,000.

Early-stage delinquencies for both HELOCs and HELoans remain very low, historically speaking, and mid-stage and serious delinquencies remain near all-time lows for both product types.

Looking more generally at homeowners’ financial picture, the rate of growth of non-mortgage debt for homeowners is slowing, but averages $8,600 per homeowner. And, a significant number of homeowners have non-mortgage debt above $10,000.

Approximately 103 million homeowners–or 86%–own only a single property. Eleven percent own two; 3% own more than that.

Forty percent of residential properties have no liens, 43% have one. The average combined loan-to-value ratio is 31%, but rises to 53% for financed properties due to the proportion of free and clear homes.