Homeowners in These States Get the Highest Rate of Home Improvement Loans


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Homeowners in These States Get the Highest Rate of Home Improvement Loans

Two men work on remodeling the walls of a house

The number of home improvement projects increased in the United States during COVID-19 as people stayed home more often and needed extra space, according to Harvard’s Joint Center for Housing Studies. In fact, Americans spent $367 billion on home improvement projects in 2021.

Building a new home office, replacing the roof, upgrading the plumbing or creating a backyard oasis can require substantial funds, so many Americans are turning to home loans. renovation to help them finance their projects.

A home improvement loan is money obtained from a lender to be used to repair, remodel or improve personal property. It is different from a home equity loan in that it is not based on the value a homeowner has accumulated in their home. Home improvement loans are not tied to a home’s equity, so interest rates are generally higher than on a home equity loan, and homeowners typically pay them off in five years or less.

This gives new homeowners – and those who haven’t paid off much of their mortgage – the chance to borrow money to tackle renovation projects. Home improvement loans also tend to get approved faster, so homeowners with a big emergency repair can take advantage of this type of loan to get the job done.

Home improvement loans have been an essential financial tool during this home improvement boom. More than one million home improvement loans were taken out across the country in 2021, totaling $131 billion in borrowings.

Portland Real Estate analyzed loan origination data from the Consumer Financial Protection Bureau to see which states had homeowners who took out the highest rate of home improvement loans in 2021, the latest information available. The share was determined by dividing the number of owner-occupied homes in each state by the number of home improvement loans. The average loan size was calculated by dividing the total dollar amount of home improvement loans taken out in each state by the number of loans taken out.



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#15. New Jersey

A neighborhood in New Jersey

– Number of loans: 32,745
– Share of houses with loans: 1.0%
– Total amount lent: $4.44 billion
– Average loan amount: $135,664



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#14. Vermont

A neighborhood in Vermont

– Number of loans: 2,687
– Share of houses with loans: 1.02%
– Total amount lent: $286.9 million
– Average loan amount: $106,764



Denise Kappa // Shutterstock

#13. Ohio

A house in a suburban neighborhood of Cleveland, Ohio

– Number of loans: 48,502
– Share of houses with loans: 1.03%
– Total amount lent: $4.0 billion
– Average loan amount: $82,464



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#12. Florida

Neighborhoods in Florida

– Number of loans: 82,289
– Share of houses with loans: 1.04%
– Total amount lent: $10.02 billion
– Average loan amount: $121,751



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#11. Pennsylvania

A neighborhood in Pennsylvania

– Number of loans: 60,798
– Share of houses with loans: 1.19%
– Total amount lent: $5.52 billion
– Average loan amount: $90,860



Felix Mizioznikov // Shutterstock

#ten. Delaware

An upscale residential home in Brookside, Delaware, seen from an aerial view

– Number of loans: 4,528
– Share of houses with loans: 1.22%
– Total amount lent: $434.8 million
– Average loan amount: $96,020



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#9. Arizona

A suburban housing estate in Scottsdale, Arizona

– Number of loans: 33,798
– Share of houses with loans: 1.28%
– Total amount lent: $4.39 billion
– Average loan amount: $129,895



d obscure photographs // Shutterstock

#8. Massachusetts

A residential area in Massachusetts

– Number of loans: 33,986
– Share of houses with loans: 1.28%
– Total amount lent: $5.32 billion
– Average loan amount: $156,645



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#seven. Oregon

A house in Portland, Oregon

– Number of loans: 21,394
– Share of houses with loans: 1.30%
– Total amount lent: $2.74 billion
– Average loan amount: $128,013



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#6. Washington

An aerial view of the neighborhood of Seattle, Washington

– Number of loans: 39,108
– Share of houses with loans: 1.35%
– Total amount lent: $5.45 billion
– Average loan amount: $139,358



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#5. New Hampshire

A neighborhood of Portsmouth, New Hampshire

– Number of loans: 7,419
– Share of houses with loans: 1.38%
– Total amount lent: $856.1 million
– Average loan amount: $115,387



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#4. Colorado

Colorado residential neighborhood in fall

– Number of loans: 31,069
– Share of houses with loans: 1.45%
– Total amount lent: $4.16 billion
– Average loan amount: $133,884



Jon Bilou // Shutterstock

#3. Rhode Island

A house in Providence, Rhode Island

– Number of loans: 6,518
– Share of houses with loans: 1.57%
– Total amount lent: $707.7 million
– Average loan amount: $108,582



Charles Knowles // Shutterstock

#2. Idaho

A subdivision of Idaho seen from above

– Number of loans: 14,160
– Share of houses with loans: 2.18%
– Total amount lent: $1.88 billion
– Average loan amount: $132,540



Jason Finn // Shutterstock

#1. Utah

Homes in Highland, Utah in an upscale neighborhood with mountain and sky views

– Number of loans: 25,227
– Share of houses with loans: 2.51%
– Total amount lent: $2.97 billion
– Average loan amount: $117,877

This story originally appeared on Portland Real Estate and was produced and
distributed in partnership with Stacker Studio.


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