Where Home Improvement Loans Are Hot
August 1, 2018
There must be a remodeling bug flying around Oklahoma City. The area ranked the highest of the 50 largest U.S. cities by volume of home improvement loans issued to homeowners, according to a new analysis by LendingTree.
San Jose, Calif., ranked second on LendingTree’s list. Analysts say the city’s high home prices and tight inventory have benefited current homeowners, who are seeing a rise in equity that they can then apply to bettering their homes.
“In the existing market, there is a shortage of current owners willing to sell, in part because it can prove challenging to find another house to buy while you sell or once you sell your home,” says Tendayi Kapfidze, chief economist at LendingTree. “In lieu of moving, many homeowners choose to improve their current homes and, for larger projects, homeowners may take out a loan to finance the renovation.”
The following three cities have the highest rate of home improvement loans, according to LendingTree:
1. Oklahoma City
- Rate of home improvement loans: 0.77%
- Median loan amount: $15,000
- Median borrower income: $64,000
2. San Jose, Calif.
- Rate of home improvement loans: 0.75%
- Median loan amount: $374,000
- Median borrower income: $144,000
3. Salt Lake City
- Rate of home improvement loans: 0.72%
- Median loan amount: $130,000
- Median borrower income: $77,000
View the full rankings for all 50 cities in the study at Lendingtree.com.
Updated: October 22, 2018