10 Cities Where Homeowners Are Taking Out Loans of Over $100K for Home Renovations
Written by
Emily Fowler
Edited by
Rebekah Evans
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Home renovations are big business, especially in the country’s hottest real estate markets. Homeowners with significant equity in their homes are borrowing more than ever — often over $100,000 — to remodel and increase property value. According to a recent SmartAsset study, cities across the U.S. are seeing a surge in home equity loans, particularly for renovations.
Here’s a look at ten cities where homeowners are taking out the biggest loans to transform their spaces.
San Jose, California
In Silicon Valley’s heart, the San Jose-Sunnyvale-Santa Clara metro area is known for its high property values, according to Data USA. Homeowners here are taking out hefty renovation loans to keep up with the competitive market. The median loan amount? A whopping $205,000. With property values in the area averaging $1.55 million, residents certainly seem to be making their homes as high-tech and luxurious as their surroundings.
San Francisco
The San Francisco-Oakland-Berkeley metro area matches San Jose with a median loan amount of $205,000 for home renovations. With median home prices reaching $1.64 million in this area, it’s understandable that residents in this high-demand area want to make sure their homes are kept up to standard.
New York
The New York-Newark-Jersey City metro sees homeowners tapping into their equity for renovations at a median loan amount of $125,000. With over 7,000 loans issued for home improvements in 2023, New York’s real estate landscape remains competitive.
Los Angeles
Los Angeles is no stranger to high-stakes real estate and home renovation loans are part of that game. In 2023, homeowners took out over 11,000 loans for renovations, with the median loan amount at $115,000.
San Diego
Further south, the San Diego-Chula Vista-Carlsbad metro area sees a median loan amount of $105,000 for home renovations. With over 6,200 loans issued in 2023, San Diego homeowners are serious about maintaining and improving their properties.
Seattle
Over 7,100 loans were issued in the Seattle-Tacoma-Bellevue metro area in 2023, with a median loan amount of $105,000. As Seattle continues to grow as a major tech hub, homeowners are investing heavily in renovations to ensure their homes match the city’s evolving real estate landscape.
Washington
In the Washington-Arlington-Alexandria metro area, homeowners took out over 9,000 home renovation loans in 2023, with a median loan amount of $105,000. As the D.C. area boasts a mix of historic homes and modern developments, residents are tapping into their home equity to update and maintain properties.
Boston
The Boston-Cambridge-Newton metro area saw over 4,500 loans issued in 2023 for home renovations, with a median loan amount of $105,000. Boston’s homeowners are obviously willing to invest large sums to keep their homes up to date.
Austin, Texas
In Austin-Round Rock-Georgetown, the median home renovation loan hit $105,000, with over 2,000 loans issued. Austin’s booming population and rapid economic growth have fueled a surge in the real estate market, with homeowners seeking to renovate and upgrade properties in the face of rising home values, according to the Federal Reserve Bank of Dallas. The city’s vibrant culture and tech-driven economy make it a prime spot for big-budget renovations.
Dallas
Homeowners in the Dallas-Fort Worth-Arlington metro area are also taking out six-figure loans for renovations. With a median loan amount of $105,000 and over 4,500 loans issued in 2023, residents here are using considerable renovations to stay competitive in the local real estate market.
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