22 Home Improvement Financing Statistics: How Americans Pay for Renovations (2026)
The numbers behind how US homeowners pay for and fund home improvement projects in 2026, from savings and credit cards to home equity, HELOCs, and financing.
US homeowners are on pace to spend roughly $522 billion on improvements and repairs to their homes in 2026, a record, yet most of that money still comes straight out of savings rather than a loan. The 22 verified statistics below show how much Americans spend on home projects, how they actually pay for them, how much home equity is available, and where HELOCs and financing fit in. If you are budgeting a project, our home services come with free fixed-price estimates so you can plan before you borrow.
Key Takeaways
- US improvement and repair spending is set to hit about $522 billion in 2026, a record, though growth is cooling (Harvard JCHS LIRA).
- 84% of homeowners funded 2024 renovations with savings, versus 29% who used credit cards and 12% who used a secured home loan (Forbes).
- Households spent an average of $12,472 on home projects in 2025, up 3.5% year over year (Angi).
- Homeowners hold about $17.8 trillion in equity, roughly $11.6 trillion of it tappable across 48 million mortgage holders (ICE Mortgage Monitor).
- The average HELOC balance reached $52,347 in 2026, up 11.2% from a year earlier (Experian).
- Home equity originations rose to 714,000 in Q3 2025, a sixth straight quarter of growth (TransUnion).
- 46% of home equity cash-outs went to home improvement in 2024, the top use of the money (Mortgage Bankers Association).
Total and average home improvement spending
1. US improvement and repair spending is on track for a record $522 billion in 2026
Annual spending on improvements and repairs to owner-occupied homes is projected to reach about $522 billion by the end of 2026, a new high, according to the Harvard Joint Center for Housing Studies Leading Indicator of Remodeling Activity cited by The MortgagePoint. That is the pool of money homeowners fund every year through savings, cards, and equity.
2. Spending growth is cooling to about 1.6% by year end
The same LIRA outlook expects home renovation and repair spending to grow 2.9% year over year early in 2026, then slow to 1.6% by year end, per JCHS figures. Slower growth means homeowners are spending more selectively, which makes an accurate estimate matter more.
3. Households spent an average of $12,472 on home projects in 2025
Across improvements, maintenance, and emergency repairs, the average household spent $12,472 in 2025, up 3.5% from $12,050 in 2024, according to Angi's State of Home Spending report reported by GlobeNewswire. Compare that with our home renovation statistics for project-level costs.
4. Improvements alone averaged $9,288 per household
Of that total, discretionary home improvements accounted for an average of $9,288 in 2025, with maintenance and emergency repairs making up the rest, per Angi. Improvement budgets are large enough that how they get funded shapes the whole project.
5. More than half of homeowners renovated in 2024 at a median of $20,000
Renovation activity is broad: 54% of homeowners renovated in 2024, as Forbes reported, at a median spend of $20,000, down from $24,000 in 2023, per Contractor magazine. A $20,000 median is well within reach of savings for some homeowners but a financing decision for many others.
6. Millennials spent the most, at an average of $14,199
By generation, Millennials led home spending in 2025 at an average of $14,199, ahead of Generation X ($12,956) and Baby Boomers ($12,454), per Angi. Younger owners also reach for financing more often, which sets up the payment mix below.
Source: Angi State of Home Spending.
How homeowners pay for projects
7. 84% of homeowners paid from cash or savings
Savings is by far the most common way to fund a renovation: 84% of homeowners used cash or savings for their 2024 projects, according to renovation survey data reported by Forbes. Paying from savings only works when the price is predictable, which is the case for a fixed-price estimate.
8. 29% used credit cards, down 8 points from 2023
Credit cards were the second most common funding source at 29% of renovations, a drop of 8 percentage points from 2023, per Forbes. The pullback suggests homeowners are wary of carrying high-rate balances on project costs.
9. 12% used a secured home loan
Secured home loans, which tap the value of the house, funded 12% of 2024 renovations, according to Forbes. That share climbs steeply with project size, as the who-finances section shows. Our financing options can help spread a larger job over time.
10. HELOCs were the most common home loan, at 6%
Among secured borrowing, home equity lines of credit led at 6% of renovations, followed by cash-out refinancing and home equity loans at 3% each, per Forbes. HELOCs let homeowners draw only what a project needs rather than a lump sum.
11. 10% used cash from a home sale
One in ten homeowners funded renovations with proceeds from selling a home, rising to 19% among the top spenders on luxury projects, according to Contractor magazine. Move-in renovations are a large slice of high-end spending.
Source: renovation survey data via Forbes. Homeowners could select more than one source.
Source: Forbes.
Home equity and HELOCs
12. Household real estate is worth about $48.0 trillion
The value of household real estate reached roughly $48.0 trillion in the third quarter of 2025, per the Federal Reserve Financial Accounts of the United States. That asset base is what home equity borrowing draws against.
13. Homeowners hold about $17.8 trillion in equity
US homeowners held approximately $17.8 trillion in real estate equity in mid 2025, according to ICE Mortgage Technology data reported by HELN. Rising home values have kept equity near record levels even as sales activity has slowed.
14. About $11.6 trillion of equity is tappable
Of that total, roughly $11.6 trillion was tappable equity, spread across about 48 million mortgage holders, per ICE Mortgage Monitor. Tappable equity is what lenders will let homeowners borrow while keeping a safety cushion in the home.
15. The average HELOC balance reached $52,347 in 2026
The average home equity line of credit balance climbed to $52,347 in 2026, up 11.2% from about $47,072 the year before, according to Experian. Balances that size underline why a precise scope keeps borrowing in check.
16. Total HELOC debt hit $427.6 billion, up 12.9%
Outstanding HELOC debt rose to $427.6 billion in 2026, a 12.9% increase year over year, per Experian. Homeowners are increasingly using lines of credit rather than refinancing away low mortgage rates.
17. Home equity originations rose to 714,000 in Q3 2025
Total home equity originations reached 714,000 in the third quarter of 2025, up nearly 30% from a year earlier and the sixth straight quarter of growth, according to TransUnion data reported by HELN. HELOCs made up more than half of that volume by balance.
Source: Federal Reserve and ICE Mortgage Monitor.
Who finances a project, and why
18. Big projects lean far more on secured loans
Financing tracks project size closely: secured home loans funded 18% of higher-end renovations of $50,000 or more, versus 12% of projects overall, per Contractor magazine. The bigger the job, the more likely a homeowner reaches for home equity rather than savings alone.
19. 46% of home equity cash-outs went to home improvement
Home improvement was the top use of extracted equity, accounting for 46% of cash-out dollars in 2024, down from 56% in 2023 as debt consolidation grew, according to Mortgage Bankers Association data reported by HELN. Renovations remain the single largest reason homeowners tap equity.
20. Maintenance and emergency costs keep rising
Even homeowners who avoid big remodels face rising baseline costs: average maintenance spending climbed to $2,041 in 2025 from $1,750, and emergency repairs to $1,143 from $978, per Angi. Unplanned repairs are exactly where a vetted pro network helps; see why homeowners choose us.
2026 financing trends to watch
21. More than 200,000 new HELOCs are opening each month
Homeowners have opened more than 200,000 new HELOCs every month since April 2025, a pace that has pushed balances to multi-year highs, according to Experian. With high equity and elevated card rates, lines of credit are the fastest-growing way to fund projects.
22. The average new credit line is about $129,000
The average line of credit among current HELOC borrowers was about $129,000 as of early 2026, far more than most homeowners actually draw, per Experian. A large approved line is not a budget, which is why a fixed-price estimate keeps a project from expanding to fill it.
What this means for homeowners
- Most home improvement is still paid from savings. With 84% of renovations funded by cash, a predictable price matters more than access to credit.
- Financing scales with project size. Small jobs rarely need a loan, but nearly one in five large renovations uses home equity, so plan the funding before the work starts.
- Equity is abundant but not free. With roughly $11.6 trillion tappable and average HELOC balances above $52,000, borrowing only what the job needs protects your cushion.
- Credit card use is falling for a reason. High-rate balances are an expensive way to fund a project when equity and fixed-price options exist.
- Pro House Maintenance matches you with vetted, licensed and insured pros and gives free fixed-price estimates, so you borrow for the real number, not an open line. See our financing options and request an estimate when you are ready.
Frequently Asked Questions
How do most homeowners pay for home improvement projects?
Savings is the dominant method. In 2025 renovation survey data reported by Forbes, 84% of homeowners funded their 2024 renovations with cash or savings, well ahead of credit cards at 29% and secured home loans at 12%. Larger projects lean more on home equity. Pro House Maintenance gives free fixed-price estimates from vetted, licensed and insured pros so you can plan the cost before choosing how to pay.
How much do Americans spend on home improvement each year?
US homeowners are on track to spend about $522 billion on improvements and repairs to owner-occupied homes in 2026, a record, according to Harvard JCHS Leading Indicator of Remodeling Activity figures. At the household level, Angi reports an average of $12,472 across improvements, maintenance, and emergency repairs in 2025.
Is it better to use a HELOC or savings for a renovation?
It depends on the project size and your equity. Most homeowners pay from savings, but home equity is common for bigger jobs: secured home loans funded 18% of higher-end projects of $50,000 or more, versus 12% overall, per Contractor magazine. With average HELOC balances near $52,347 in 2026, per Experian, borrowing is meaningful, so a fixed-price estimate helps you borrow only what the job actually needs.
How much home equity do US homeowners have?
US homeowners held about $17.8 trillion in equity in mid 2025, with roughly $11.6 trillion of it tappable across 48 million mortgage holders, based on ICE Mortgage Monitor data. That backdrop is why home equity lending has grown for six straight quarters. Even so, most homeowners tap only a fraction, and 46% of equity cash-outs go toward home improvement.
Does Pro House Maintenance help with financing a project?
Yes. Pro House Maintenance connects you with vetted, licensed and insured pros and provides free fixed-price estimates, so you know the number before committing to savings, a card, or a home equity option. Clear pricing up front is the simplest way to avoid over-borrowing. See our financing options and request an estimate when you are ready.