flexiblefullpage
interstitial1
Currently Reading

Remodeling Loan Data Reveals Geographical, National Trends

Advertisement
billboard
Market Conditions

Remodeling Loan Data Reveals Geographical, National Trends

An analysis of loan data shows the most popular, and least popular, states for home improvement


By NAHB Remodelers September 14, 2023
home loan applications
This article first appeared in the September/October 2023 issue of Pro Remodeler.

Expenditures for residential home improvements soared 13% to $328 billion in 2021 from $289 billion in 2020, according to the Bureau of Economic Analysis’ National Income and Product Accounts. This is the largest increase in home improvement spending since 1993 when it saw a 16% gain. 

The significant gain in residential remodeling was fueled in part by changes in housing and lifestyle decisions made during the COVID-19 pandemic. The market in 2021 also benefited from solid existing home sales, high home price appreciation, high incomes, and an aging housing stock. 

NAHB Economist Jing Fu analyzed data mandated under the 2021 Home Mortgage Disclosure Act (HMDA) and published by the Consumer Financial Protection Bureau and found significant variations in market activity based on location. Her analysis of the HMDA data offers a good look at remodeling activity by state and county.

Looking at total home improvement loan applications by state, it’s no surprise that California, the most populous state, tops the list with the highest number of home improvement loan applications in 2021 at 109,856 applications. Florida is second with 82,341 home improvement loan applications. On the other end of the spectrum, Wyoming and Alaska had the lowest total numbers of applications, which were below 1,000 in both states.

Looking instead at home improvement loan applications per 1,000 population, two states in the mountain west—Utah and Idaho—had the highest number of applications, with rates of 7.6 and 7.4 applications per 1,000 population. Rhode Island (6) and New Hampshire (5.4) ranked third and fourth, followed by Colorado with a rate of 5.3. Alaska had the fewest applications per 1,000 population, with a rate of 1.2.

Aggregate across all states, there were 3.3 loan home improvement loan applications for every 1,000 population.

 


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.

Related Stories

Remodeling Spending to Decline at Faster Rate, Says Harvard

Remodeling spending may drop for the first time since 2020, according to predictions from Harvard's Remodeling Futures Program

Working to Create a Strong, Skilled Workforce

Remodeling is booming, but labor shortages continue to challenge the industry

Remodeler Market Sentiment Edges Up Despite Challenges

Market continues to grow, but slower than 2022 

Remodeling Market Predicted to Contract by 2024

Harvard's Joint Center for Housing Studies projects that year-over-year spending on improvements and maintenance will decline 2.8% through the first quarter of 2024.

Large Stock of Aging Homes Signals Remodeling Growth

The majority of US housing stock was built before 1969

Working Hard for a Bright Remodeling Industry

Introducing the new NAHB Chairman Alicia Huey

Study Finds Remodelers’ Net Profits Declined

How far did net profits decline and what's influencing the drop?

Builders Focus on Remodeling as New Construction Declines

Some builders hope to benefit from remodeling's strength, giving a slight boost to new construction confidence

What's Your Game Plan for 2023?

Key industry influencers weigh in on what the future holds

2023 Game Plans: Year of Concerns and Opportunities

Remodeling industry Thought Leaders share their perspectives on growth, challenges, and plans for the new year

Advertisement
boombox1
Advertisement
native1

More in Category




Advertisement
native2
Advertisement
halfpage1