Home improvement spending surged during the COVID-19 pandemic before leveling off in 2022 and then declining in 2023. According to Construction Coverage, the number of single-family home improvement loans peaked at nearly 745,000 in 2022 but dropped to 565,000 in 2023. However, spending patterns vary across the U.S., with factors such as economic conditions and cost of living playing a major role. In 2023, the Pacific Northwest, Mountain West, and New England saw high levels of investment in home improvement. At the local level, fast-growing areas in Utah, Idaho, Colorado, Washington, and Oregon led in spending, with Salt Lake City ranking first among large metros.
At the state level, homeowners in Utah and Idaho—two of the top 10 fastest-growing states—took out the most home improvement loans at 17.0 and 13.0 loans per 1,000 homeowners, respectively. Other top states include neighboring Oregon, Colorado, and Washington, as well as Rhode Island, New Hampshire, Vermont, and Massachusetts in New England. At the other end of the spectrum, homeowners in Louisiana took out the fewest home improvement loans, at just 2.1 loans per 1,000 homeowners.
Read more
