Richard Gilbert

Americans hold $35.8T in home equity, much of it illiquid and hard to access.
HEAs offer up-front cash for equity, with no interest or monthly payments, but complex terms favor issuers.
In first 10 months of 2024, 11,000 HEA contracts worth $1.1B were signed; total market ~$2–3B.
Settlement amounts can grow 19.5–22% yearly, often exceeding traditional home-secured credit rates.
Homeowners may pay more for HEAs than HELOCs due to fees, multipliers, and undervalued home estimates.

Home Equity Agreements Offer New Opportunities

Slide 1
Buyers: 2026 quietly shifts power as incomes finally outrun home prices.

Slide 2
Affordability improved 7 straight months; longest streak since 2019.

Slide 3
Hidden driver: 2.8% income growth beats price growth, boosting buying power even with high rates.

Slide 4
That math alone adds ~3% affordability by late 2026, last seen summer 2022.

Slide 5
Mortgage rates aren’t crashing—~6.2% early 2026, maybe sub-6% by year-end.