Average HELOC Balances Surpass $50K in 2026

Total HELOC Balances Increased 12.9% in 2026

Overall, HELOC debt nationwide increased at a 12.9% annual rate in 2026, a massive percentage increase compared to most of the prior 10 years, when HELOC activity was at its lowest.

Source: Experian data from March of each year

The nearly 13% increase in HELOC balances shows that consumers are increasingly choosing to borrow from themselves by way of their home equity. Their uses for HELOC funds are varied, but the bottom line is home equity is relatively inexpensive financing in an increasingly expensive world.

Reasons for getting a HELOC include:

• Home improvement: Thanks to the lock-in effect, many homeowners are increasingly making do with their current home and renovating instead of moving.
• Debt consolidation: HELOCs are one of the less-costly forms of consumer financing available to most consumers, currently averaging around 8% APR according to Curinos data, versus more than 20% APR for most credit card balances.
• Other big-figure expenses like college tuition and wedding costs: The average line of credit among current borrowers is $129,000 according to Experian data, which is high enough to cover these life milestones in most cases.

Although interest rates for other types of consumer loans remain stubbornly high, HELOC rates have consistently declined over the past year, which sat at 7.54% in March, according data from Curinos. That's a rate that rivals that of a new auto loan for consumers with good credit.

For the above reasons and more, generous HELOC rates have benefitted buyers with mortgage rates low enough to lock them out of selling as well as other options such as cash-out refinancing.

Expert's Take

Susan Allen

Chief Product Officer, Experian Housing

"Many consumers who bought homes after rates rose in 2022 heard the phrase, 'marry the home, date the rate' and hoped that rates would quickly revert to lower levels. But refinancing is not a guarantee, and homeowners will tell you that they have been married to both the house and the rate longer than expected."

Learn more: What is a HELOC?

Average HELOC and Home Equity Loan Rates in the U.S.

For many consumers, 7.5% financing is as cheap a source of financing as they'll likely find anywhere today. So it's no wonder that a larger share of consumer debt is finding its way there from more expensive debt types like credit cards, where average balances are beginning to fall, after years of increases.

HELOC as a Secured Loan

Would-be HELOC borrowers need to meet certain requirements before their line of credit can be approved. A HELOC is a line of credit secured by the equity a homeowner has in a property, and lenders allow homeowners to tap up to a certain percentage of the paid-off portion of their mortgage.

For example, someone who has a home valued at $400,000 with $100,000 remaining on their mortgage may be able to tap up to 80% of that equity—$240,000—in the form of a HELOC.

Equity isn't the only factor lenders consider, however. Lenders also want to see that the borrower's income is enough to cover their existing debts, including any borrowed funds from a HELOC. Lenders determine this by calculating the borrower's debt-to-income ratio (DTI). Most lenders are looking for a DTI under a certain level, often 43%. A borrower's credit history and credit scores will also be considered, just as with a mortgage application.

Learn more: Pros and Cons of a HELOC

Younger Borrowers Making Greater Use of HELOCs

Although younger homeowners who do borrow against their home equity borrow less than older generations, they use more of their available credit. HELOC credit limits of younger homeowners are lower, of course, because in most cases they've built up less equity than older generations, the latter of whom have had more time to pay down their mortgage and increase equity.

Source: Experian data as of March 2026

Generation X, as with most types of consumer debt, owe more in dollar terms than other generations as expenses tend to peak for most U.S. consumers in middle age.

Learn more: Requirements for a Home Equity Loan or HELOC

HELOCs Increasingly in Demand Across the U.S. Last Year

Although housing prices in local markets across the U.S. are no longer all moving up, HELOC demand—as measured by average balance increases and originations—is continuing its upward climb.

For every month in 2025, there were more HELOC originations made to homeowners than the same month a year earlier, according to Experian.

HELOC Originations by Month, 2024-2025

Not only have more than 200,000 new HELOCs opened each month since April 2025, the lines of credit extended to homeowners by lenders have also increased—though by how much will be determined by local real estate markets. Nationally, the average HELOC limit stands at $129,000 in March 2026, according to Experian data, up from $123,000 in March 2025. But the averages at the state and local levels vary widely, from under $80,000 in Iowa and West Virginia to more than $200,000 in California and Hawaii.

Average HELOC Credit Limits

Average HELOC Balances, Utilization by State

Source: Experian data as of March 2026

The HELOC data surrounding California shows how exceptional its residential real estate markets are. Despite having the highest average HELOC balances among the states in the nation at $78,000, it also has one of the HELOC lowest utilization rates at 38%. That's likely due to the state having among the highest residential real estate values in the nation. High-value real estate allows homeowners with sufficient equity and credit to borrow at higher limits than those in states where there is less home equity available to tap.

HELOC borrowers appear to be leaning on their lines of credit the most in the central Plains states, where HELOC utilization exceeds 45%. This reliance is possibly in reaction to much higher home insurance premiums than the rest of the nation, a combination of recent and anticipated exposure to property damage. Dipping into their lines of credit may be a way for some homeowners to meet that increase, among other expenses, in 2026.

Average HELOC Balances and Utilization, 100 Largest Metros

Source: Experian data as of March 2026

Metros where HELOC balances are growing the most tended to be in the South in 2026, with only two Midwestern exceptions, Milwaukee and Indianapolis. Many recent migrants to retirement destination states like Florida and South Carolina may account for the jump in HELOCs, as newly arrived homeowners decide on what exactly they want to change about their new property.

Metros Where HELOC Balances Grew the Most in 2026

Source: Experian data as of March 2026

Metros where HELOC balances grew much less than the national rate of 12% last year appear to have larger than average HELOC balances, suggesting that homeowners may already be borrowing "enough" and resist any further HELOC spending if possible.

Metros Where HELOC Balances Grew the Least in 2026

Source: Experian data as of March 2026

Underwriters of HELOCs generally expect, alongside significant home equity, a credit standing that's similar to first-time homebuyers applying for a mortgage, including income requirements and not using too much of their existing credit, alongside, crucially, keeping current on any monthly loan repayments they do have.

Outlook for HELOCs in 2026

It's difficult to predict what's in store for home equity lines of credit in 2026, as economic conditions have abruptly changed multiple times in the past 12 months and will likely continue to lurch in different directions in the 12 months to come.

We can, however, identify some of the inputs into the HELOC market that should inform some of the possibilities in 2026:

• HELOC demand remains elevated. Increasingly stressed consumers continue to look for savings anywhere they can. For homeowners looking for lower-cost financing of existing debt, one HELOC loan could save most homeowners with typical revolving credit card debt hundreds of dollars annually in interest payments alone. In addition to rate-driven demand, locked-in homeowners who are increasingly choosing to renovate their existing homes are another source of HELOC demand.
• HELOC lenders appear willing, even eager, to meet the homeowner demand for lower-cost financing. Amid increased demand, lenders also appear willing to make more HELOCs to homeowners as well. This is happening as the mortgage industry shifts at least some of its energies away from a dormant conventional mortgage market toward home equity loans. This wasn't always the case: As recently as four years ago, most major banks made first-lien mortgages for borrowers but not home equity lines of credit. In addition, more digital-first lenders are entering the HELOC space. Generally, increased competition among lenders should lower costs for HELOC borrowers.
• Rate uncertainty remains a factor in the year ahead. Rates are an important unknown for HELOC demand in 2026, particularly as most HELOCs have a variable rate. That means that as the Federal Reserve raises and lowers its key policy rates, the APRs on existing HELOC balances will also move in tandem. Over the past year, the Federal Reserve lowering rates has driven average HELOC APRs to under 8% in 2026, helping increase demand. Even if rates remained unchanged, that demand is likely to continue as more equity is amassed, mostly by fortunate homeowners with low fixed-rate mortgages.

If anything remains solid, it's the home equity existing homeowners have already amassed. Homeowners aren't using their home equity like an ATM—a phrase that may be familiar to some from the oughts. If anything, homeowners are only using a fraction of the home equity available to them—there remains $11 trillion in tappable home equity, according to ICE Mortgage Monitor, a mortgage industry observer. So even if home prices depreciate somewhat from what are still record levels in many parts of the country, most HELOC borrowers will still have plenty of home equity remaining.

And for some homeowners, staying put instead of trading up may end up being the more prudent decision. According to Susan Allen of Experian Housing: "Affordability is partly about knowing what you truly need versus what you've been told you should want. A slightly smaller home or a property that needs some elbow grease can be the difference between stretching too far financially and building sustainable equity."