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Home Improvement Loan Applications Moderate as Borrower Profile Gradually Ages – Eye On

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Home improvement activity has remained elevated in the post-pandemic period, but both the volume of loan applications and the age profile of borrowers have shifted in notable ways. Data from the Home Mortgage Disclosure Act (HMDA), analyzed by NAHB, show that total home improvement loan applications have eased from their recent post-pandemic peak, and the distribution of borrowers across age groups has gradually tilted older.

The number of home improvement loan applications increased sharply during the housing boom and the remodeling surge that followed the onset of the pandemic. After totaling 1.15 million loans in 2019, activity fell 20% to 0.92 million in 2020 as uncertainty and lockdowns disrupted markets. Applications then rebounded to 1.07 million in 2021 and climbed to a cycle high of 1.49 million in 2022, reflecting strong demand for renovations. Since then, activity has moderated but remains historically solid, edging down to 1.25 million loans in 2023 and 1.20 million in 2024. Despite cooling from the pandemic-era surge, the 2024 total stands above pre-pandemic levels, supported by an aging housing stock and limited inventory of existing homes for sale.

Alongside these changes in loan volume, the age composition of borrowers has gradually shifted, revealing notable changes across age groups.

In 2019, applicants ages 45-54 accounted for the largest share of home improvement loans at 26.0%. By 2024, their share slipped slightly to 25.2% but remained the largest cohort. The 55-64 age group experienced a more noticeable decline, falling from 23.2% in 2019 to 21.7% in 2024.

In contrast, both younger and older segments expanded their presence in the remodeling market. Borrowers ages 35-44 increased their share from 22.0% to 22.9%, while those ages 25-34 rose from 8.7% to 9.1%. Although, still representing a small portion of total applications, applicants under age 25 edged up from 0.4% to 0.5%. More notably, the share of older loan applicants increased. The 65-74 cohort ticked up from 13.1% to 13.2%, and applicants over age 74 rose from 4.7% to 5.4%.

Overall, the data indicate a gradual aging of home improvement activity. Borrowers aged 65 and older accounted for 17.8% of loan applications in 2019, increasing to 18.6% in 2024. This shift likely reflects both the aging of the homeowner population and a growing preference among older homeowners to undertake aging-in-place renovation and maintain homes they have owned for many years. Meanwhile, the modest gains among borrowers in their mid-30s to early 40s suggest continued renovation demand from trade-up buyers and households choosing to remodel rather than buy a new home amid high interest rates.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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In Research & Trends

Affordability Pyramid Shows Over Half of U.S. Households Cannot Buy a $300,000 Home – Eye On

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NAHB recently released its 2026 Priced-Out Analysis, highlighting the housing affordability challenge. While previous posts discussed the impacts of rising home prices and interest rates on affordability, this post focuses on the related U.S. housing affordability pyramid. The pyramid reveals that 52% of households (70 million) cannot afford a $300,000 home, while the estimated median price of a new home is around $410,000 in 2026.

The housing affordability pyramid illustrates the number of households able to purchase a home at various price steps. Each step represents the number of households that can only afford homes within that specific price range. The largest share of households falls within the first step, where homes are priced under $200,000. As home prices increase, fewer and fewer households can afford the next price level, with the highest-priced homes, those over $2.5 million, having the smallest number of potential buyers. Housing affordability remains a critical challenge for households with income at the lower end of the spectrum.

The pyramid is based on income thresholds and underwriting standards. Under these assumptions, the minimum income required to purchase a $200,000 home at the mortgage rate of 6% is $55,500. In 2026, about 47.5 million households in the U.S. are estimated to have incomes no more than that threshold and, therefore, can only afford to buy homes priced up to $200,000. These 47.5 million households form the bottom step of the pyramid. Of the remaining households that can afford a home priced at $200,000, 22.4 million can only afford to pay a top price of somewhere between $200,000 and $300,000. These households make up the second step on the pyramid. Each subsequent step narrows further, reflecting the shrinking number of households that can afford increasingly expensive homes.

It is worthwhile to compare the number of households that can afford homes at various price levels and the number of owner-occupied homes available in those ranges, as shown in Figure 2. For example, while around 47.5 million households can afford a home priced at $200,000 or less, there are only 20.7 million owner-occupied homes valued in this price range. This trend continues in the $200,000 $300,000 price range, where the number of households that can afford homes is much higher than the number of housing units in that range. These imbalances reflect the ongoing challenges of housing affordability.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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In Home Improvement

Before and After: 5 Bathroom Makeovers Bring Spa Style Home

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This article was originally published by a www.houzz.com . Read the Original article here. .

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In Research & Trends

New Home Sales Close 2025 with Modest Gains – Eye On Housing

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New home sales ended 2025 on a mixed but resilient note, signaling steady underlying demand despite ongoing affordability and supply constraints. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that while month-to-month activity shows a small decline, sales remain stronger than a year ago, signaling that buyer interest in newly built homes has improved. The December NAHB/Wells Fargo Housing Market Index showed that 67 percent of builders used sales incentives, the highest percentage post-COVID. Builders offered an average home price reduction of 5 percent during December.

Sales of newly built single-family homes declined 1.7 percent month-over-month in December to a seasonally adjusted annual rate of 745,000 units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represented a 3.8 percent year-over-year increase. An estimated 679,000 homes were sold in 2025, down 1.1 percent from the 2024 rate of 686,000. A new home sale is recorded when a contract is signed or a deposit is accepted, regardless of the stage of construction. The seasonally adjusted annual rate reflects the pace of sales that would occur over a 12-month period if current conditions persisted.

New single-family home inventory totaled 472,000 units in December, 2.7 percent lower than the prior month, and 3.5 percent lower than a year earlier. At the current sales pace, the months’ supply of new homes stood at 7.6 months, down from 8.2 months one year ago, though still above the six-month level that is generally considered balanced.

Combined new and existing home inventory has edged lower in recent months, with total months’ supply declining to 4.0, reflecting slower construction activity. Meanwhile, inventory conditions in the existing home market have retreated after making gradual improvement in prior months. Moderating prices across both markets have helped support buyer demand amid ongoing affordability concerns.

By the end of 2025, there were 128,000 completed, ready-to-occupy homes available for sale on a non-seasonally adjusted basis, up 8.5 percent from a year earlier. Completed homes accounted for a little more than a quarter of the total inventory, while homes under construction made up 51 percent. The remaining 22 percent of homes sold in December had not yet started construction at the time the sales contract was signed.

Home prices showed further signs of easing in 2025. The median new home sale price declined 1.3 percent to $415,000 from $420,300 in 2024. Affordability improved at the lower end of the market, with 20 percent of new homes priced below $300,000. Thirty-four percent of homes were priced above $500,000, while the remaining 46 percent fell within the $300,000 to $500,000 range.

Regionally, year-to-year new home sales were up 1.7 percent in the Midwest and 0.4 percent in the South but declined 4.9 percent in the West and 7.7 percent in the Northeast.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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In Home Improvement

Tour a Modern Organic Home With Seamless Indoor-Outdoor Flow

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On a compact lot in Tampa, Florida, a well-traveled young couple set out to build a home that would feel like a calming retreat when they returned from the road yet could open up easily for gatherings with friends. Collaborating with the homeowners and builder from the earliest stages and using Houzz Pro software, interior designer Christina Cruz shaped a modern organic residence that emphasizes privacy, abundant natural light and a strong connection between indoors and out.

Warm white oak details, softened curves and moments of biophilia create an easy, relaxed look and feel. A welcoming kitchen designed for lingering conceals a surprise walk-in wine room and home bar, while a soaring great room is anchored by a cozy fireplace and a zen garden tucked beneath the stairs. Seamless indoor-outdoor living supports comfort and entertainment. A serene primary suite and a spa-like bath with an oversize steam shower complete the sense of retreat.

Read more and save photos



This article was originally published by a www.houzz.com . Read the Original article here. .

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In Research & Trends

Existing Home Sales Retreat Amid Low Inventory – Eye On Housing

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Existing home sales fell in January to a more than two-year low after December’s strong rebound, as tight inventory continued to push home prices higher and winter storms weighed on activity. Despite mortgage rates trending lower and wage growth outpacing price gains, limited resale supply kept many buyers on the sidelines. Resale inventory remained at lowest level since January 2025. Though home price appreciation has slowed in recent months, affordability remains a challenge.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 8.4% to a seasonally adjusted annual rate of 3.91 million in January, according to the National Association of Realtors (NAR). This marks the lowest level since August 2024. On a year-over-year basis, sales were 4.4% lower than a year ago.

The existing home inventory level was 1.2 million units in January, down 0.8% from December but up 3.4% from a year ago. At the current sales rate, January unsold inventory sits at a 3.7-months’ supply, up from 3.5-months in December and January 2024. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.

Homes stayed on the market for a median of 46 days in January, up from 39 days in the previous month and 41 days in January 2025.

The first-time buyer share was 31% in January, up from 29% in December and 28% from a year ago.

The January all-cash sales share was 27% of transactions, down from 28% in December and 29% a year ago. All-cash buyers are less affected by changes in interest rates.

The January median sales price of all existing homes was $396,800, up 0.9% from last year. This marks the new high for the month of January and the 31st consecutive month of year-over-year increases. The median condominium/co-op price in January was up 3.8% from a year ago at $364,600. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026.

Sales declined in all four major regions in January, ranging from 5.9% in the Northeast to 10.3% in the West. On a year-over-year basis, sales also fell across all regions, from 1.6% in the South to 7.9% in the West.

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 79.2 to 71.8 in December after four months of increases. On a year-over-year basis, pending sales were 3.0% lower than a year ago, according to the National Association of Realtors’ data. The decline suggests buyers are holding back due to limited inventory choices.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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In Home Improvement

Reimagined Kitchen in White, Wood and Blue Opens Up the Home

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Before Photo

William Adams DesignSave Photo

“After” photos by Tatiana Sokolova of Capture Studio

Kitchen at a Glance
Who lives here: A retired couple
Location: Alameda, California
Size: 285 square feet (26 square meters)
Designer: William Adams Design

Before: The former 165-square-foot kitchen felt dated and inefficient with aging gray cabinets, mismatched white and black appliances, wood-look vinyl flooring and no island. A corner sink beneath two front-yard-facing windows anchored the layout. “I just felt like that corner sink was dated,” Adams says. “It also took up so much space by the way it was positioned.”

Without an island, storage and prep space were limited and the center of the room felt like wasted territory. An eating area with a large fireplace sat just off the kitchen. “Having that giant fireplace inside the kitchen made no sense at all,” Adams says.

White ceramic tile with dark grout wrapped the countertops and backsplash, creating a dingy look and maintenance the couple didn’t want. Lighting was also a problem: A single ceiling fixture plus a couple of fluorescent task lights left the space poorly illuminated. “The lack of light was not conducive for working in the kitchen or doing everyday tasks,” Adams says. “They enjoy cooking and entertaining and there wasn’t enough space in that footprint to contain what they needed. The cleanliness with those countertops was also an issue.”



This article was originally published by a www.houzz.com . Read the Original article here. .

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In Research & Trends

Private Residential Construction Spending Edges Higher in October on Home Improvements – Eye

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Private residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements. Despite this increase, total spending remained 1.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.

According to the latest U.S. Census construction spending data, single-family construction spending declined 1.3% in October, consistent with the soft builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 6.1%. Meanwhile, multifamily construction spending edged down 0.2% in October after four consecutive months of modest gains. Compared to a year earlier, multifamily spending was still down 2.8%. Improvement spending (remodeling) rose 4.5% for the month and was up 4.4% compared to a year ago.

The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025.

Spending on private nonresidential construction was down 2.6% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $23 billion drop in manufacturing construction spending, followed by a $3.8 billion decrease in commercial construction spending.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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In Research & Trends

Existing Home Sales Climb to Near 3-Year High in December – Eye On Housing

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Existing home sales rose in December to the fastest pace in nearly three years, but annual sales for 2025 remained at a 30-year low as elevated home prices and mortgage rates kept buyers on the sidelines, according to the National Association of Realtors (NAR). While mortgage rates have eased from 7% seen at the start of 2025 to near 6% by year-end, tight inventory continued to push home prices higher as more homeowners took listings off the market. Resale inventory dropped to its lowest level since January 2025. Though home price appreciation has been slowed in recent months, housing affordability remains a challenge.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 5.1% to a seasonally adjusted annual rate of 4.35 million in December, the highest level for 2025 and highest since February 2023. On a year-over-year basis, sales were 1.4% higher than a year ago. For the year 2025, existing home sales totaled 4.06 million, unchanged from 2024 and matching the lowest level since 1995.

The existing home inventory level was 1.18 million units in December, down 18.1% from November but up 3.5% from a year ago. At the current sales rate, December unsold inventory sits at a 3.3-months’ supply, down from 4.2-months in November but up from 3.2-months in December 2024. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.

The December median sales price of all existing homes was $405,400, up 0.4% from last year. This marks the 30th consecutive month of year-over-year increases. The median condominium/co-op price in December was up 1.5% from a year ago at $364,400.  Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026. All four major regions saw an increase in sales in December, with gains ranging from 2.0% in the Northeast and Midwest to 6.9% in the South. However, sales were mixed on a year-over-year basis. Sales remained unchanged in the Midwest and West, rose 3.6% in the South, and fell 1.9% in the Northeast.

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 76.7 to 79.2 in November due to lower mortgage rates. On a year-over-year basis, pending sales were 2.6% higher than a year ago, according to the National Association of Realtors’ data.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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New Home Sales Rise Year-Over-Year as Prices Stabilize – Eye On Housing

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The new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that new single-family home sales continue to reflect a stabilizing market after a period of heightened volatility. While month-to-month activity shows some variability, sales remain stronger than a year ago, signaling that buyer interest in newly built homes has improved.

Sales of newly built single-family homes increased 18.7 percent year over year in October to a seasonally adjusted annual rate of 737,000 units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represented a modest 0.1 percent decline from September and a 1.2 percent decrease on a year-to-date basis. A new home sale is recorded when a contract is signed or a deposit is accepted, regardless of the stage of construction. The seasonally adjusted annual rate reflects the pace of sales that would occur over a 12-month period if current conditions persisted.

New single-family home inventory totaled 488,000 units in October, unchanged from the prior month and 1.7 percent higher than a year earlier. At the current sales pace, the months’ supply of new homes stood at 7.9, down from 9.3 months one year ago, though still above the six-month level that is generally considered balanced.

Combined new and existing home inventory has edged lower in recent months, with total months’ supply declining to 4.9, reflecting slower construction activity. Meanwhile, inventory conditions in the existing home market have shown gradual improvement, and moderating prices across both markets have helped support buyer demand amid ongoing affordability concerns.

By the end of October 2025, there were 124,000 completed, ready-to-occupy homes available for sale on a not seasonally adjusted basis, up 10.7 percent from a year earlier. Completed homes accounted for roughly one-quarter of total inventory, while homes under construction made up 51 percent. The remaining 24 percent of homes sold in October had not yet started construction at the time the sales contract was signed.

Home prices showed further signs of easing in October. The median new home sale price declined 3.3 percent to $392,300, marking an 8.0 percent decrease from a year ago. Affordability improved at the lower end of the market, with 25 percent of new homes priced below $300,000, the highest share in recent months. Thirty percent of homes were priced above $500,000, while the remaining 45 percent fell within the $300,000 to $500,000 range.

Regionally, year-to-date new home sales declined in three of the four regions, falling 0.1 percent in the Midwest, 7.2 percent in the West, and 22.9 percent in the Northeast. The South was the only region to post growth, with sales up 2.9 percent.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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