While most people are familiar with the concept of using home equity to finance home improvements or consolidate debt, few are aware of the growing trend of home equity investments (HEIs) as an emerging asset class. According to data from the St. Louis Fed, the total value of the U.S. home equity market is now $32.6 trillion, and HEIs are poised to become a significant player in the real estate investment landscape. Home equity investments allow retail investors to access a homeowner’s equity in exchange for a stake in the home’s future appreciation. Unlike traditional mortgage debt, HEIs are …
