Where people are doing most home renovations

James Meyer // Shutterstock As households pay off their mortgage and property values increase, equity in the home increases. Homeowners often have the option to tap into this equity by refinancing and taking cash out. Sometimes these loans are used to improve the property through renovations, which can, in turn, help improve the property value and the homeowner’s quality of life. The number of these loans in a particular area can help indicate the housing market’s momentum and residents’ financial stake in the home. Considering this, SmartAsset ranked 40 of the largest U.S. metro areas based on the number of home equity loans intended for renovations issued in 2023 relative to the local population. Key Findings Residents of the Milwaukee metro area are doing the most home renovations per capita. Just over 5,600 home equity loans were issued for the purpose of making home renovations in this Wisconsin metro, more than any other city when accounting for the local population. The median loan amount was $65,000 with a 6.50% interest rate (the lowest interest rate studywide), and these homeowners typically bring in $120,000 annually.  Over 12,000 home renovation loans were issued from equity in this metro area. The Atlanta, GA metro had the highest amount of equity loans meant for renovations issued. These homeowners faced a higher-than-average interest rate on these loans at 8.30%, with a median loan amount of $85,000. Overall, the Atlanta metro ranked 19th when the number of these loans is compared to the size of the population. Homeowners are using over $200,000 for renovations in these Bay Area metros. The San Jose and San Francisco metro areas had the largest median loan amounts for home renovations at $205,000 each. The median property values for these properties were $1.55 million and $1.64 million, respectively. The Denver metro had the highest interest rates for home renovations. Ranking sixth overall for the highest rate of home renovation loans issued, Denver area residents saw a median interest rate of 8.7% on these loans, with a median of $95,000 taken out for renovations. Top 10 Metro Areas Where Home Renovation Loans Are Being Issued Most SmartAsset Milwaukee-Waukesha, WI Home renovation loans issued per capita: 0.003593 Number of home renovation loans issued: 5,606 Median loan amount: $65,000 Median interest rate: 6.50% Median property value: $365,000 Median household income: $120,000 Metro population: 1,560,424 Raleigh-Cary, NC Home renovation loans issued per capita: 0.003309 Number of home renovation loans issued: 4,994 Median loan amount: $85,000 Median interest rate: 7.49% Median property value: $485,000 Median household income: $134,000 Metro population: 1,509,231 Providence-Warwick, RI-MA Home renovation loans issued per capita: 0.003081 Number of home renovation loans issued: 5,170 Median loan amount: $85,000 Median interest rate: 7.50% Median property value: $475,000 Median household income: $114,000 Metro population: 1,677,803 Pittsburgh, PA Home renovation loans issued per capita: 0.002909 Number of home renovation loans issued: 7,048 Median loan amount: $55,000 Median interest rate: 7.64% Median property value: $265,000 Median household income: $105,000 Metro population: 2,422,725 Portland-Vancouver-Hillsboro, OR-WA Home renovation loans issued per capita: 0.002898 Number of home renovation loans issued: 7,273 Median loan amount: $75,000 Median interest rate: 8.25% Median property value: $585,000 Median household income: $132,000 Metro population: 2,509,925 Denver-Aurora-Lakewood, CO Home renovation loans issued per capita: 0.002788 Number of home renovation loans issued: 8,377 Median loan amount: $95,000 Median interest rate: 8.70% Median property value: $655,000 Median household income: $145,000 Metro population: 3,005,131 Charlotte-Concord-Gastonia, NC-SC Home renovation loans issued per capita: 0.002745 Number of home renovation loans issued: 7,700 Median loan amount: $85,000 Median interest rate: 7.50% Median property value: $465,000 Median household income: $121,000 Metro population: 2,805,115 Columbus, OH Home renovation loans issued per capita: 0.002651 Number of home renovation loans issued: 5,779 Median loan amount: $75,000 Median interest rate: 8.49% Median property value: $375,000 Median household income: $116,000 Metro population: 2,180,271 Minneapolis-St. Paul-Bloomington, MN-WI Home renovation loans issued per capita: 0.002607 Number of home renovation loans issued: 9,679 Median loan amount: $65,000 Median interest rate: 7.88% Median property value: $415,000 Median household income: $130,000 Metro population: 3,712,020 Indianapolis-Carmel-Anderson, IN Home renovation loans issued per capita: 0.002551 Number of home renovation loans issued: 5,458 Median loan amount: $65,000 Median interest rate: 8.25% Median property value: $335,000 Median household income: $109,000 Metro population: 2,139,689 Data and Methodology To find where people are doing the most home renovations, SmartAsset reviewed Home Mortgage Disclosure Act data for 2023. Specifically, originated loans intended for home renovations were compared to the size of the local population according to 2023 Census Bureau data. The median income of these homeowners, as well as the subject property value and interest rate, were also considered. This story was produced by SmartAsset and reviewed and distributed by Stacker.