Home Equity Lending Market Size (2024 - 2029)

The Home Equity Lending Market is experiencing growth driven by increasing demand for collateralized loans, particularly in countries with rising housing prices such as the United States, Canada, and China. The market's expansion is supported by technological advancements, such as cloud banking and AI, which streamline the loan process and decision-making. Additionally, the global rise in real estate prices and the easing of regulatory restrictions are encouraging homeowners to leverage their properties for loans. This trend is further fueled by population growth and the need for more housing, creating opportunities for the home equity lending sector to develop and expand.

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Market Size of Home Equity Lending Industry

Home Equity Lending Market Summary
Study Period 2020-2029
Market Size (2024) USD 30.74 Billion
Market Size (2029) USD 36.74 Billion
CAGR (2024 - 2029) 3.50 %
Largest Market North America
Market Concentration Medium

Major Players

Home Equity Lending Market Major Players

*Disclaimer: Major Players sorted in no particular order

Home Equity Lending Market Analysis

The Home Equity Lending Market size is estimated at USD 30.74 billion in 2024, and is expected to reach USD 36.74 billion by 2029, growing at a CAGR of 3.5% during the forecast period (2024-2029).

Loans provided by the global banking industry are observing a continuous increase over the years resulting in an increase in demand for collateral as a risk mitigation strategy by the banks. United States, Canada, Russia, China, and Australia had emerged as countries post covid with the largest increase in y-o-y housing prices leading to an increase in loan value secured through Home Equity lending. With an increase in interest rate by monetary authorities to curb the inflation home equity lending has observed an increase with a comparatively higher price rise of housing markets.

The continuousThe increase in population is resulting in a rising global demand for housing space with a continuous increase in the price of residential spaces. China, the United States, India Germany, and Japan are among the countries with the largest residential real estate and are providing opportunities for Home equity lending businesses to develop. Global rise in real estate prices and the easing of regulatory restrictions are encouraging people to use their homes as collateral for loans.

Technological innovation in the market are leading to an increase in the number of users opting for Home Equity lending. Use of cloud banking software by the banks are reducing the time taken by the users to purchase Home equity loans and data driven tools of AI and ML are automating the decision making process of banks. Developed countries such as United States are observing a sharp rise in homeowner equity in real state and driving business for Home Equity lending in the region.

Home Equity Lending Industry Segmentation

Home equity lending is a type of loan that allows the homeowner to borrow against the equity in their homes. The loan amount is provided on the basis of the difference between the home's current market value and the mortgage balance due in it.

The home equity lending market is segmented by types, by service providers, and by region. By type, the market is segmented into fixed-rate loans and home equity lines of credit. By service providers, the market is segmented into banks, online, credit unions, and others. By region, the market is segmented into North America, South America, Europe, Asia Pacific, Middle East and Africa. The report offers market sizes and forecasts for the home equity lending market in value (USD) for all the above segments.

By Types
Fixed Rate Loans
Home Equity Line of Credit
By Service Providers
Banks
Online
Credit Union
Others
By Regions
North America
South America
Europe
Asia-Pacific
Middle-East and Africa
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Home Equity Lending Market Size Summary

The Home Equity Lending Market is poised for growth, driven by increasing demand for collateralized loans as a risk mitigation strategy by banks. The market is experiencing a rise in demand due to the continuous increase in housing prices in countries like the United States, Canada, Russia, China, and Australia. These nations have seen significant year-on-year increases in housing values, which in turn has boosted the loan value secured through home equity lending. The market is further influenced by rising interest rates implemented by monetary authorities to combat inflation, which has led to a higher price rise in housing markets. The global demand for housing space is on the rise, with countries such as China, the United States, India, Germany, and Japan offering substantial opportunities for home equity lending businesses. The easing of regulatory restrictions and the global increase in real estate prices are encouraging homeowners to use their properties as collateral for loans.

Technological advancements are also playing a crucial role in the expansion of the home equity lending market. The adoption of cloud banking software and data-driven tools like AI and ML by banks is streamlining the loan acquisition process and automating decision-making, thereby increasing user adoption. In developed regions such as the United States and Europe, home equity lending is witnessing a steady rise, while in developing Asian markets, there is a growing interest from international players looking to expand their offerings. This trend is particularly beneficial for small and medium-sized enterprises in Asia, which require significant funding during their initial stages. Home equity lending is emerging as an efficient financing solution, offering lower interest rates compared to other credit options. The market is partially fragmented, with numerous players entering and innovating to capture new opportunities. Notable companies in the market include Bank of America Corporation, Discover Bank, and LoanDepot LLC, among others. Recent mergers and acquisitions, such as Redfin's acquisition of Bay Equity Home Loans and Ontario Teachers’ Pension Plan Board's acquisition of HomeQ, highlight the dynamic nature of the market and the strategic moves by companies to expand their presence and offerings.

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Home Equity Lending Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increase In Sales of Household Units

      2. 1.2.2 Higher Duration of Repayment

    3. 1.3 Market Restraints

      1. 1.3.1 Low Income Countries with Poor Housing are Restraints of the Market

      2. 1.3.2 Rising Interest Rate

    4. 1.4 Market Opportunities

      1. 1.4.1 Technological Innovation of Digital Lending Expanding Market Size

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in the Home Equity Lending Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Types

      1. 2.1.1 Fixed Rate Loans

      2. 2.1.2 Home Equity Line of Credit

    2. 2.2 By Service Providers

      1. 2.2.1 Banks

      2. 2.2.2 Online

      3. 2.2.3 Credit Union

      4. 2.2.4 Others

    3. 2.3 By Regions

      1. 2.3.1 North America

      2. 2.3.2 South America

      3. 2.3.3 Europe

      4. 2.3.4 Asia-Pacific

      5. 2.3.5 Middle-East and Africa

Home Equity Lending Market Size FAQs

The Home Equity Lending Market size is expected to reach USD 30.74 billion in 2024 and grow at a CAGR of 3.5% to reach USD 36.74 billion by 2029.

In 2024, the Home Equity Lending Market size is expected to reach USD 30.74 billion.

Home Equity Lending Market Report Snapshots

Home Equity Lending Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)