San Diego Homeowners Are Sitting on Serious Equity
And if you’re living in North Park, South Park, or the surrounding metro neighborhoods, you’re likely sitting on even more than the national average.
Right now, American homeowners hold a record $11.5 trillion in tappable equity—equity you can access without selling your home and while keeping a healthy 20% cushion in place. And with HELOC (Home Equity Line of Credit) rates dropping, this may be the most affordable moment in years for San Diego homeowners to put that equity to work.
So… should you tap into it now or hold off?
Let’s break it down.
Record-Breaking Equity—Including in Central San Diego
According to the latest Mortgage Monitor by ICE Mortgage Technology:
- U.S. homeowners hold $17.6 trillion in total equity
- $11.5 trillion of that is “tappable.”
- The average homeowner has around $212,000 in tappable equity
- 48 million mortgage holders can now access that equity—an all-time high
And yet? Most people aren’t using it.
In Q1 2025, homeowners withdrew only 0.41% of their tappable equity—way below normal.
Here in North Park, South Park, University Heights, Normal Heights, and Kensington, where home values have surged over the last decade, the amount of unused equity is even more significant.
Borrowing Just Got Cheaper
Good news for anyone thinking about a renovation or smart financial reset:
HELOC rates have dropped by 2.5% recently, dipping below 7.5% in March.
What that means in real numbers:
- Early 2024 payment on a $50,000 HELOC: $412/mo
- Mid-2025 payment on the same amount: $311/mo
That’s over $100/month in savings.
If the Fed cuts rates again (as expected), HELOCs could land in the mid-6% range by 2026—making borrowing even more affordable.
Why More San Diego Homeowners Are Considering HELOCs
Especially in urban neighborhoods like North Park and South Park, where older homes often need upgrades or additions, many owners are looking at HELOCs as a strategic tool. Homeowners are using equity to:
- Renovate or upgrade
- Modernizing a 1930s kitchen
- Adding AC to your Craftsman home
- Building that backyard ADU or studio
- Expanding living space without leaving the neighborhood
- Consolidate high-interest debt
HELOCs can offer far lower rates than credit cards or personal loans, and simplify monthly payments. - Make a strategic investment
From starting a business to buying a second home or rental property, your equity gives you leverage without tapping retirement savings. - Prepare for emergencies
A HELOC gives you a flexible “safety net” you can draw on when life throws a curveball.
Should You Tap Your Equity Now—or Wait?
Ask yourself:
- Do I have a clear plan for the funds (renovation, debt payoff, investment)?
- Can I comfortably handle the payment even if rates shift?
- Do I want access to cash without selling my home or refinancing my low-rate mortgage?
If the answer is yes, tapping into your equity could be a smart move.
How the McT Real Estate Group Can Help
As your local North Park & South Park real estate experts, The McT Real Estate Group has guided thousands of San Diego homeowners through decisions involving equity, refinancing, remodeling, and long-term real estate planning.
We can help you:
- Understand your current home valuation
- Estimate how much tappable equity you actually have
- Explore whether a HELOC makes sense for your long-term goals
- Connect you with trusted local lenders who specialize in central San Diego properties
Whether you’re upgrading your home, planning a renovation, or want clarity on your options, we’re here as a resource. Contact the McT Real Estate Group today.