Where Are HELOCs Most Common Across US Cities?

AC
By Anja Solum, CEPF
Edited by Rae Osborn

Updated: December 9, 2024

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As economic conditions fluctuate, home equity lines of credit (HELOCs) have become a popular tool for homeowners looking to tap into their home's equity. With the Federal Reserve's recent interest rate cuts, HELOCs could see renewed interest among homeowners. City-level data provides insight into where these borrowing options are most used, reflecting differences in local lending practices and economic conditions​.

MoneyGeek analyzed HELOC data from the Census Bureau for nearly 600 cities. We learned that households in the South have the lowest HELOC usage rates, while those in Utah frequently surpass the national average.

KEY FINDINGS

  • Several Utah cities have higher percentages of HELOC usage compared to households in other states. For instance, West Jordan, South Jordan, Lehi and Sandy all exceed 13%.

  • States like Mississippi and Texas have some of the lowest HELOC adoption rates, averaging around 3% to 4%.

  • Of the ten largest U.S. cities, San Diego has the highest percentage of HELOC usage at 8%, followed by Los Angeles and Philadelphia — both at roughly 7%.

15 Cities With the Highest HELOC Adoption Rates

West Jordan, Utah, is where most households have a HELOC (17%). Three other Utah cities (South Jordan, Lehi and Sandy) join within the top 15. Utah has the most cities within these 15, followed by two cities in Wisconsin (Madison and Janesville) and Indiana (Bloomington and Fishers). The largest city at the top of this list is Madison, which has over 280,000 residents and nearly 58,000 households. Roughly 16% of households in Madison have a HELOC.

HELOC Usage in 10 Most Populous US Cities

San Diego, the eighth-largest U.S. city, has the largest percentage of households with a HELOC (8%), followed by neighboring Los Angeles (7%). In New York City — which has the largest population in the country — roughly 5% of all households with a mortgage have a HELOC. Of the ten largest cities, Texas has the most cities on the list (Houston, San Antonio and Dallas), and all three fall below 5% for the number of households with a HELOC.

State-By-State: Cities With the Highest HELOC Usage

Throughout thirty U.S. states, the city with the highest percentage of households with a HELOC is West Jordan, Utah, with 17%. The lowest is Jackson, Mississippi, (3%), followed by Cheyenne, Wyoming, (4%) and Edmond, Oklahoma, (5%). In the biggest states like New York and California, roughly 14% of households with a mortgage have a HELOC in the top city (Schenectady and Carlsbad, respectively).

Top City in Each State for HELOC Usage
City
State
Households With a HELOC

Hoover, AL

Alabama

12.7%

Anchorage, AK*

Alaska

4.9%

Queen Creek, AZ

Arizona

10.3%

Little Rock, AR

Arkansas

5.3%

Carlsbad, CA

California

13.5%

Centennial, CO

Colorado

13.5%

Danbury, CT

Connecticut

12.2%

Kendall, FL

Florida

11.3%

Johns Creek, GA

Georgia

11.0%

Honolulu, HI*

Hawaii

11.3%

Idaho Falls, ID

Idaho

9.8%

*This is the only city in the state with available data.

Tips for Getting and Managing HELOCs

HELOCs offer flexibility for homeowners looking to tap into their home equity, but shopping wisely and managing these loans effectively is key to avoiding financial pitfalls. Use these tips to make informed decisions about borrowing and repayment.

    loanReview icon

    Compare rates from multiple lenders, including credit unions, which often provide competitive terms. Don’t settle for the first HELOC offer you receive.

    giveMoney icon

    ​Prepare for the repayment period. When a HELOC shifts from the draw phase to the repayment phase, payments increase as they include both interest and principal. Building a savings cushion during the draw period can help manage this transition.

    homeMortgage icon

    Using HELOC funds for home renovations can increase the value of your property, thereby raising your equity over time. This can make the HELOC a valuable investment, especially if you focus on improvements that yield high returns in your market.

    goodCredit icon

    A higher credit score can secure better interest rates on a HELOC. Improving your score by paying down existing debt and correcting credit report errors can significantly reduce borrowing costs.

Methodology

MoneyGeek analyzed mortgage status data from the U.S. Census's one-year American Community Survey (ACS) for 570 cities to uncover how much HELOCS are used nationwide. The data includes households with a primary mortgage and HELOC, those with both a second mortgage and HELOC and those with a HELOC but no primary mortgage. Data is from 2023.

Full Dataset

See the data that shaped our analysis below.

City
Households With a HELOC
Homeowners With a HELOC

West Jordan, UT

17.4%

4704

Madison, WI

15.8%

9124

Bloomington, IN

14.9%

1372

South Jordan, UT

14.7%

3408

Waterloo, IA

14.7%

2495

Lynn, MA

14.3%

2719

Greenville, SC

14.3%

2054

Schenectady, NY

14.0%

1748

Lehi, UT

13.8%

2707

Sandy, UT

13.6%

3714

Centennial, CO

13.5%

4353

About Anja Solum, CEPF

Anja Solum, CEPF headshot

Anja Solum is a certified educator in personal finance and the Data Journalism Manager at MoneyGeek. For over six years, she has produced data analyses and studies for agency and in-house teams across multiple verticals.

Solum holds a bachelor's degree in communication arts from Florida International University. She's passionate about using data to tell compelling, informed stories that empower readers.

Read Full Bio »
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