The global equity release market is projected to grow to $52.1 billion annually by 2035, up from $17.7 billion currently, as aging populations and demand for retirement funding drive growth, according to the European Pensions and Property Asset Release Group (EPPARG)’s and EY‘s fourth edition of the Global Equity Release Survey report.
The report, released Monday, found that the market has remained resilient despite geopolitical challenges and elevated interest rates. North America is expected to account for much of the projected growth, with the U.S. and U.K. forecast to become the largest markets by annual volume.
The report draws on data for 2025-26 from market participants in 14 countries and cities across Europe, North America, Australia and Hong Kong — the latter of which participated in the survey for the first time. The findings were adopted at an EPPARG meeting in Madrid, Spain, on Sept. 29.
Annual equity release volumes in the U.S. are projected to increase to 21.3 billion euros by 2035, from 7.1 billion euros currently. In the U.K., volumes are forecast to reach 21.5 billion euros, up from 7.7 billion euros. The report’s global projection of 52.1 billion euros is equivalent to about $60 billion, based on currency conversion.
Equity release products allow older homeowners to access their housing wealth without selling their homes outright. Reverse mortgages, referred to in the report as “lifetime mortgages,” remain the most common product globally. Home reversion arrangements, which involve selling a portion of a property’s value in exchange for an upfront payment, gained traction in Poland and Germany.
Lump-sum payments remain the most popular product type worldwide, while a combination of lump sums and annuity payments is common in France and Hong Kong. Drawdown and annuity products are also available in several markets.
Eligibility requirements vary by region. Equity release products are generally available to borrowers ages 55 and older in North America, Australia, Hong Kong and the U.K. In most surveyed European markets, the minimum age is typically between 60 and 65.
Despite the growth outlook, funding remains a major obstacle in several markets. Banks are the primary source of financing globally, followed by securitization, insurance companies and debt. Most surveyed markets have access to domestic funding, with Italy and Ireland the exceptions.
Respondents expect domestic funding to increase in many markets but called for more institutional investors to enter markets where access to capital is limiting growth. Some also pointed to securitization as a way to expand funding options and help providers scale.
“Since a lack of funding remains a major barrier to growth in a number of European countries, we would like to encourage the involvement of socially aware funders and investors,” Steve Kyle, EPPARG’s secretary general, said in a statement.
Consumer awareness was another frequently cited barrier. Respondents said misconceptions about equity release products and limited understanding among consumers and industry professionals continue to hinder adoption.
Kyle said a well-regulated equity release market could help older homeowners remain independent while unlocking housing wealth that could support economic activity. He also called for consumer-focused industry standards that protect borrowers while allowing innovation.
Ben Grainger, a partner at EY, said cross-border funding relationships are beginning to give European providers greater capacity to expand.
Digitalization and artificial intelligence are also expected to play a growing role in the sector. All survey respondents anticipated using digitalization, automation and AI for customer due diligence and marketing within five years. Other applications include property valuation, underwriting, risk assessment and customer service.
Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA), said rising costs of living and aging populations are putting pressure on traditional retirement systems.
“This report offers a measure of optimism by highlighting the growing importance of housing wealth as a source of financial security,” he said. “The ability to access and monetize home equity will play an increasingly important role in helping older homeowners sustain their financial well-being and remain in their homes as they age.”
