[1]Despite the fact that 86% of U.S. homeowners say their home value increased from 2022 to 2023, a whopping 79% are still as anxious now about the state of the economy as they were compared to last year. This is according to the second annual Home Equity Punch List survey [2] conducted by The Harris Poll [3] on behalf of Finance of America Reverse [4].
Homeowners' concerns about the economy remain high, and they are more apprehensive about their ability to pay for certain costs when compared to last year, yet many aren't looking to their housing wealth to help pay for expenses.
The survey also found a lack of knowledge about financial products such as reverse mortgages that could offer potential solutions and major differences when comparing age and gender during the homebuying process.
Key Findings:
- Some 61% of homeowners worry about unexpected healthcare costs in retirement, up from 48% in 2022.
- An estimated 41% of homeowners feel anxious about their discretionary spending, such as purchasing a new car or taking a trip, up from 32% in 2022.
- Roughly 40% of homeowners feel anxious about their ability to pay off debt, up from 36% in 2022.
- Just 32% of homeowners said they were likely to use a home equity loan, a slight increase from 28% in 2022.
- Only 42% of women know that home equity can help supplement income in retirement, compared to 65% of men.
- An overall 38% of women and 38% of Boomers know that a reverse mortgage can be used to pay off a mortgage, compared to 46% of men and 49% of Gen Z and Millennials.
When combined with research from the National Council on Aging [5] that shows 47 million older households—or more than three in four seniors—do not have the financial resources to cover long-term care services or another financial shock, it's clear a solution is needed, and tapping into home equity could help some older homeowners.
In fact, research found that seniors age 62+ have more than $12 trillion in combined home equity, providing an opportunity to allay the financial challenges they are most concerned about.
To read the full report, including more data, charts, and methodology, click here [2].