Americans held >$34T in home equity, making housing wealth a major retirement asset that can be turned into cash when retirement accounts are not enough.
Five main paths stood out: downsize, use a HELOC, do a cash-out refinance, take a reverse mortgage, or rent out space.
Before tapping equity, retirees should estimate usable equity, protect room for taxes and maintenance, and match the strategy to income gaps, flexibility, and heirs.
Downsizing can free cash and cut housing costs, while HELOCs offer flexible short-term access but carry variable rates, repayment shock, and qualification challenges.
Cash-out refinances can pull equity through one new mortgage, while reverse mortgages suit homeowners 62+ staying put but still require taxes, insurance, upkeep.
Renting part or all of a home can create recurring retirement income, but taxes, insurance, tenant management, and long-term planning still matter.