American homeowners collectively hold a staggering $34.5 trillion in home equity, as of the first quarter of 2025, a $600 billion gain over the past year, according to a new report.
LendingTree’s analysis of 700,000 home equity loans offered to users of its platform across the 50 states from January to May of this year also reveals that many homeowners can now access substantially larger home equity loan offers, which now average $144,330 nationwide, up nearly 39% since 2023.
And the sharp rise in equity has been driven by homeowners deciding to remain in their existing home amid higher interest rates.
“Housing prices continue to rise in much of the country while people stay put in their current homes, reluctant to trade their current low mortgage rate for the higher rate that would come with a new mortgage,” says Matt Schulz, LendingTree’s chief consumer finance analyst. “The longer they stay... the more of their mortgage they pay off. Combine that with increasing home prices and you get significantly higher home equity.”
This build-up of home equity means substantial loan offers, but these vary widely across the US. For example, in Hawaii the average offer has skyrocketed to $493,143 which is more than seven times the average in West Virginia at just $64,916.
Other top states include California and Utah, both exceeding $320,000 in average offers. These same states also top the list for the highest estimated monthly payments and median home values.
“That extra money can go toward doing a more substantial home renovation, consolidating other debts, paying educational expenses or even starting a small business,” Schulz says. “Ultimately, it gives you options.”
However, not all states are seeing gains. New Hampshire and Pennsylvania, for example, have actually seen average offer amounts drop sharply since 2023. And while interest rates fluctuate less dramatically than offer sizes, even small differences — from 7.07% in West Virginia to 7.94% in North Dakota — can impact borrowing costs over time.
“Home equity gives you options, which is so important when you’re trying to knock down debt in a time of high interest rates,” concludes Schulz. “Home equity loans shouldn’t be entered into lightly because using your home as collateral is serious business, but they’re absolutely worth considering for those who are struggling with high-interest debts.”
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