The global equity release market is anticipated to grow nearly threefold by 2035, with the United States expected to be the largest contributor. According to the fourth annual Global Equity Release Survey by the European Pensions and Property Asset Release Group (EPPARG) and Ernst & Young LLP (EY), the current annual volume for global equity release stands at $17.7 billion, drawing data from 14 countries, including the US, UK, and Australia.
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The report forecasts that by 2035, this volume will rise to around $52 billion, largely due to significant growth in North America. Homeowners aged 62 and older hold record housing wealth of $15.34 trillion as of the second quarter of 2026, according to the National Reverse Mortgage Lenders Association (NRMLA). This figure reflects a 2.7% increase from the previous quarter, buoyed by a $430 billion rise in senior home values, despite a $30 billion increase in senior-held mortgage debt.
Steve Irwin, president of NRMLA, noted that while borrowing costs remain high, senior homeowners are accumulating substantial housing wealth, which can provide flexibility in retirement. He emphasized the need for the financial industry to educate older homeowners on effectively incorporating this wealth into their financial plans for long-term security.
Despite the asset potential, the conversion of home equity into retirement income through reverse mortgages remains low, presenting a challenge for financial advisors. Irwin stated that as aging populations face mounting pressure on traditional retirement systems, accessing home equity will increasingly support older homeowners in maintaining their financial well-being.
The EPPARG-EY survey indicates that the US ranks among the largest equity release markets, with over 10 active providers and most financing coming from banks, followed by securitization and insurance companies. Home equity release products in the US are primarily accessible to those aged 62 and older through the federally insured Home Equity Conversion Mortgage (HECM) program.
Looking ahead, industry professionals foresee challenges in the reverse mortgage market due to high mortgage rates and affordability issues, affecting the equity accessible to older homeowners. However, the long-term outlook remains positive, with projections suggesting US market growth from approximately $7.7 billion presently to $21.5 billion by 2035.
The EPPARG-EY report cites limited consumer awareness and common misconceptions about reverse mortgages as major barriers to growth. Many potential borrowers mistakenly believe that lenders take ownership of their homes. High interest rates and funding constraints also hinder demand. Nonetheless, survey respondents believe that marketing equity release products as a mainstream retirement planning solution through financial advisors could significantly boost growth.