Homes.com Chief Economist Brad Case analyzes why U.S. homeowners are tapping home equity lines of credit (HELOCs) more steadily since 2022, yet using less than half of their available credit—over $100 billion in balances by late 2025—indicating prudent financial choices amid higher variable rates.[homes]
Conservative Equity Use
HELOC balances rose for over a dozen quarters through 2025, but total credit limits grew faster, leaving most equity untapped as a “safety valve” for needs like medical bills or tuition rather than routine spending. Unlike the mid-2000s borrowing frenzy, today’s homeowners prioritize flexibility over debt, bolstered by rising home values that expand limits without aggressive draws.[homes]
Florida Homeowner Examples
In Jacksonville, where recent equity dips averaged $37K year-over-year due to moderating prices, a homeowner could draw selectively from a HELOC for renovations—like updating a kitchen to boost resale value—without risking over-leverage in our 6%+ mortgage environment. This approach preserved optional liquidity for families facing unexpected costs, such as college tuition, while keeping balance sheets strong amid limited refinancing options.cotality+1
Market Implications
Higher rates encourage selective borrowing, signaling homeowner discipline that supports spending stability even if jobs soften—good news for Florida’s market normalization. As your local Florida Realtor, I help clients leverage this equity wisely for upgrades or downsizing.[homes]
Read the full analysis here: Homes.com Chief Economist on Homeowner Equity. Contact me to assess your Jacksonville property’s equity potential![homes]
Related: if you’re weighing whether to keep more of that equity by selling it yourself, here’s what selling without a realtor in St. Johns County actually involves.