Homeowners Sit on Record Equity — Why Most Still Can’t Afford to Move Up in 2026

Many homeowners are holding an unprecedented $18 trillion in home equity as of Q2 2026. Yet, despite this record, making a move to a new home isn’t as simple as it sounds for most. With replacement mortgage rates hovering around 7%, plus the added weight of taxes and insurance, the path to upgrading often feels out of reach. As a mortgage professional focused on helping clients understand their options, I see many turning to alternatives like renovating, renting, downsizing, or considering bridge financing instead of moving up. It’s a complex landscape, but with the right guidance, there’s always a path forward for your unique situation.