Although suffering a dip from the previous quarter, home improvement loan originations have increased over 35% year-over-year to over $3.5 billion, signaling a strong demand for home remodeling and renovations. Datasets from the Joint Center for Housing Studies at Harvard University and the National Association of Homebuilders point to signs that remodeling activity is softening, but the increase in home improvement loan originations demonstrates that remodeling activity fares well, especially as many are likely to finance through home-equity lines of credit. Remodelers are mostly positive while some see activity slowing in certain markets, but as homeowners are pulling more money to pay for their renovations compared to earlier in the year, they might do well to position themselves to capitalize on that.
Home Improvement Originations Surge Despite Weak Outlook
