Homeowners pulled out more than $152 billion in cash-out refinancing in 2020, nearly double 2018 levels.
Home equity, it appears, is the new winning Lotto ticket.
According to Kermit Baker, founder and director of the Remodeling Futures Program at Harvard University, the 3% increase in remodeling revenues from 2019 to 2020 — despite the pandemic — marked the 10th consecutive year of growth, with 2021 sure to continue that trend. The key to the vigorous growth is the spike in home values, allowing homeowners to take cash out for projects. Baker presented these findings at Harvard’s annual spring conference, and the highly relevant update on the state of the remodeling industry pointed to a number of key drivers of a robust market in which home equity plays a critical role.
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