The US housing market’s combined value sits at $43.4T in 2022, and there is $9.9T accessible US home equity as of Q1 2022. Home price appreciation (“HPA”) is an untapped, multi-trillion-dollar asset class. Home equity is usually the largest asset of the average U.S. consumer household, yet there is no easy way today for homeowners to access the HPA without 1. selling and leaving their homes, or 2. increasing their debt load and taking on interest expense, either through home equity loans or reverse mortgages. Homebuyers and homeowners alike want ways to maximize their purchase power and increase their financial flexibility, while investors look for equity-based exposure into residential real estate without prohibitive acquisition and carrying costs.
HomePace seeks to create a platform for homebuyers/owners and investors to share in risks and rewards of HPA by creating a new equity-based asset. Through HomePace’s product, consumers can unlock financial flexibility without increasing their cash flow burden, opening up financial possibilities ranging from increasing their home purchase power to growing retirement savings to paying down high interest debt. We think a lot about the financial well-being of the everyday consumer as part of our Everyday Economy investment thesis, and we believe HomePace’s potential to help unlock the multi-trillion-dollar HPA for millions of homeowners and homebuyers is a massive opportunity.
We were extremely impressed by Joe and his co-founders Bo and Megan when we first met them – they are a great combination of seasoned operators who have helped scale companies from 0 to 100, with directly relevant domain experience from FutureAdvisor, BlackRock, Unison, and Goldman Sachs. We were able to quickly build conviction on the team and the market opportunity, and therefore, we were excited to co-lead the seed round with our friend, Ben Ling, at Bling Capital slightly over a year ago. HomePace was a concept stage business at the time.
We feel fortunate to have been able to work side-by-side with Joe and the rest of the HomePace team since Day 1, and we couldn’t be more thrilled for them for this next phase of building the business.