According to HousingWire, a new report from the European Pensions and Property Asset Release Group and EY projects substantial growth in the global equity release market over the next decade. The market is expected to expand significantly from its current size to roughly triple by 2035, with North America driving much of this increase. The U.S. and U.K. are anticipated to become the dominant players in this space by volume.
Equity release products let older homeowners tap into their home's value without having to sell the property itself. The most common approach globally is the lifetime mortgage, though other structures like home reversion deals and various payment arrangements have gained popularity in different regions. The report found that lump-sum payments remain the preferred choice for most borrowers, though some markets favor combinations of upfront payments and ongoing income.
The survey covered markets across Europe, North America, Australia, and Hong Kong, looking at current conditions and future projections. Eligibility varies by geography, with North America, Australia, Hong Kong, and the U.K. typically requiring borrowers to be at least fifty-five, while most European markets set the minimum age between sixty and sixty-five.
The report identified two major hurdles slowing adoption. First, many markets struggle with funding constraints, as banks currently finance most of these products globally. Some European countries face particular challenges accessing capital, and industry participants called for greater involvement from institutional investors and wider use of securitization. Second, consumer awareness remains limited, with misconceptions about these products and insufficient understanding among both the public and professionals creating adoption barriers.
Industry experts see technology playing a bigger role going forward, with all survey respondents expecting digital tools, automation, and artificial intelligence to support customer verification, marketing, property assessment, and risk evaluation within five years. The underlying drivers for growth include aging populations and rising pressure on traditional retirement systems, as more older homeowners need financial security to maintain their independence and remain in their homes longer.
What I am seeing locally here in the Bay Area and East Bay is that older homeowners are increasingly curious about their options as home values remain substantial and retirement income sources feel stretched. These equity release products aren't yet as mainstream in California as they might become, but the trends suggest we'll be having more conversations with mature sellers about accessing their wealth strategically. It's worth staying informed about how these solutions evolve and what they could mean for your long-term financial planning.
