Editor's Note: This story originally appeared on Construction Coverage.
During the early days of the COVID-19 pandemic, homeowners nationwide used their spare time to tackle overdue home projects. As the year continued, a combination of factors, including low interest rates and rising home prices, helped fuel a surge in home renovations, improvements, and remodels.
These trends persisted into 2022, but a combination of economic uncertainty, sluggish home sales, and rising rates led to a slight decrease in home improvement spending.
However, recent data from the Joint Center for Housing Studies at Harvard University indicates that the slowdown in home improvement spending is likely temporary and that spending levels should trend up through the first half of 2025.
Investing in home improvements varies by location due to factors such as cost of living, local economic conditions, and the housing market.
To find the locations investing the most in home improvement, researchers at Construction Coverage analyzed data from the Home Mortgage Disclosure Act. See details on the methodology at the end.
Here are the top cities where homeowners are spending the most on home improvements.
15. Indianapolis-Carmel-Greenwood, IN
- Home improvement loans per 1,000 owner-occupied households: 9.7
- Total annual home improvement loans: 5,261
- Median home improvement loan amount: $65,000
- Median home improvement interest rate: 8.25%
- Median home price: $283,596
14. Boston-Cambridge-Newton, MA-NH
- Home improvement loans per 1,000 owner-occupied households: 9.8
- Total annual home improvement loans: 11,490
- Median home improvement loan amount: $105,000
- Median home improvement interest rate: 7.75%
- Median home price: $705,496
13. Phoenix-Mesa-Chandler, AZ
- Home improvement loans per 1,000 owner-occupied households: 9.8
- Total annual home improvement loans: 11,666
- Median home improvement loan amount: $75,000
- Median home improvement interest rate: 7.45%
- Median home price: $459,067
12. San Diego-Chula Vista-Carlsbad, CA
- Home improvement loans per 1,000 owner-occupied households: 10.0
- Total annual home improvement loans: 6,236
- Median home improvement loan amount: $105,000
- Median home improvement interest rate: 7.99%
- Median home price: $952,865
11. Seattle-Tacoma-Bellevue, WA
- Home improvement loans per 1,000 owner-occupied households: 10.1
- Total annual home improvement loans: 9,537
- Median home improvement loan amount: $105,000
- Median home improvement interest rate: 7.8%
- Median home price: $746,560
10. Rochester, NY
- Home improvement loans per 1,000 owner-occupied households: 10.2
- Total annual home improvement loans: 3,021
- Median home improvement loan amount: $55,000
- Median home improvement interest rate: 7.59%
- Median home price: $257,786
9. Columbus, OH
- Home improvement loans per 1,000 owner-occupied households: 10.9
- Total annual home improvement loans: 5,666
- Median home improvement loan amount: $75,000
- Median home improvement interest rate: 8.5%
- Median home price: $316,666
8. Denver-Aurora-Centennial, CO
- Home improvement loans per 1,000 owner-occupied households: 11.0
- Total annual home improvement loans: 8,328
- Median home improvement loan amount: $95,000
- Median home improvement interest rate: 8.7%
- Median home price: $589,914
7. Charlotte-Concord-Gastonia, NC-SC
- Home improvement loans per 1,000 owner-occupied households: 11.2
- Total annual home improvement loans: 7,587
- Median home improvement loan amount: $85,000
- Median home improvement interest rate: 7.5%
- Median home price: $386,254
6. Providence-Warwick, RI-MA
- Home improvement loans per 1,000 owner-occupied households: 11.4
- Total annual home improvement loans: 4,725
- Median home improvement loan amount: $85,000
- Median home improvement interest rate: 7.5%
- Median home price: $490,045
5. Portland-Vancouver-Hillsboro, OR-WA
- Home improvement loans per 1,000 owner-occupied households: 11.7
- Total annual home improvement loans: 7,157
- Median home improvement loan amount: $75,000
- Median home improvement interest rate: 8.25%
- Median home price: $553,245
4. Grand Rapids-Wyoming-Kentwood, MI
- Home improvement loans per 1,000 owner-occupied households: 12.2
- Total annual home improvement loans: 3,896
- Median home improvement loan amount: $55,000
- Median home improvement interest rate: 8.24%
- Median home price: $329,362
3. Milwaukee-Waukesha, WI
- Home improvement loans per 1,000 owner-occupied households: 12.5
- Total annual home improvement loans: 4,888
- Median home improvement loan amount: $65,000
- Median home improvement interest rate: 7.25%
- Median home price: $351,351
2. Raleigh-Cary, NC
- Home improvement loans per 1,000 owner-occupied households: 13.8
- Total annual home improvement loans: 4,959
- Median home improvement loan amount: $85,000
- Median home improvement interest rate: 7.49%
- Median home price: $447,526
1. Salt Lake City-Murray, UT
- Home improvement loans per 1,000 owner-occupied households: 15.3
- Total annual home improvement loans: 4,459
- Median home improvement loan amount: $75,000
- Median home improvement interest rate: 7.99%
- Median home price: $546,393
Methodology
To find the locations investing the most in home improvements, researchers at Construction Coverage analyzed the latest data from the Federal Financial Institutions Examination Council’s 2023 Home Mortgage Disclosure Act, the U.S. Census Bureau’s 2022 American Community Survey, and Zillow’s Zillow Home Value Index.
The researchers ranked metros according to the number of home improvement loans per 1,000 owner-occupied households. In the event of a tie, the metro with the larger number of total annual home improvement loans was ranked higher.
Researchers also calculated the median home-improvement loan amount, median home-improvement loan interest rate, and median home price.
Only conventional, single-family, home-improvement loans that were originated in 2023 were considered in the analysis.
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