Remodeling market stays strong as more homeowners renovate instead of move
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The remodeling market remained positive throughout the second quarter of 2026, despite a small dip compared to the previous quarter, a report from the National Association of Home Builders (NAHB) said.
The same report pointed to more homeowners choosing to renovate their properties over moving to new homes.
If you are looking to join the homeowners remodeling their homes, consider a renovation loan or accessing your home equity to fund your remodel.
If you are looking to use your home equity to help fund any home projects, you can start with a HELOC application.
What’s the current demand for remodeling and renovation?
The current demand for remodeling and renovating has dropped slightly from the previous quarter in 2026, but the number is still in a positive range.
The NAHB surveys remodelers to determine whether the market is “good,” “fair” or “poor.” Remodelers will answer questions based on a scale from 0 to 100, with 50 and above being positive. The first quarter of 2026 averaged a 62 on the NAHB Remodeling Market Index (RMI), while the second quarter of 2026 averaged a 61 on the same scale.
Why are homeowners choosing to renovate instead of move?
Why homeowners are choosing to renovate their homes instead of moving might be due to current mortgage rates and existing housing inventory.
Current mortgage rates are not the highest they have been this year, but they are more than 0.5% higher than the lowest point this year. While half a percent might not seem like a lot, it can add up over the years and make the cost of renovations seem lower in comparison. This along with the lower housing inventory could be the reason homeowners are choosing to renovate their properties instead of looking to purchase new ones.
Are homeowners choosing bigger or smaller renovation projects?
Homeowners are choosing renovation projects smaller than $50,000, with slightly more homeowners choosing home renovation projects under $20,000. Still, a large number are reporting that homeowners are deciding on renovation projects at $50,000 or more.
Can I use my home equity to fund a renovation or remodeling project?
Yes, you can use your home equity to fund a renovation or remodeling project.
Home equity is the difference between how much you owe on any mortgages and how much your home is worth. The funds you get from accessing your home equity can be used for any expenses you may have or are planning, including home renovations and remodels. There are several loan options available that allow you to access your home equity: home equity loan*, cash-out refinance** and a popular option for home projects, a home equity line of credit, or HELOC.
Which home equity option is best for renovations?
Using funds from a HELOC for renovations and remodels is a great choice as HELOCs offer a line of credit based on your home equity that can be drawn on as needed.
The option to draw on your HELOC is beneficial for rolling costs that can come with home projects. With a HELOC, you will only need to pay back the funds you access and not the total loan amount you qualify for.
Another benefit of using a HELOC for renovations is that the interest you pay on your HELOC could be tax-deductible if used for certain home projects***.
How can I apply for a HELOC to renovate or remodel my home?
You can apply for a HELOC to renovate or remodel your home with an online application.
When you start a HELOC application, you will be connected with a professional Loan Officer who can answer questions about your HELOC or help you along the application process.
Apply for a HELOC to renovate or remodel your home today.
*Available as closed end, fixed rate, second lien. Restrictions regarding debt to income, loan amount and total number and/or value of liens and financed properties applies. Minimum equity and FICO score requirements apply. Existing first lien must be fully amortizing fixed rate or adjustable rate mortgage. Not available in all states. Not all applicants will be approved. Applicant subject to credit and underwriting approval. Not a commitment to lend. Contact Rate for more information.
**Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact Rate for more information.
***Rate does not provide tax advice.
