Weekly Real Estate News
Summary
Point’s preliminary third-quarter index shows renovation-related home equity demand losing momentum even as most surveyed homeowners still say they plan to remodel.
Homeowners still say they want to renovate, but fewer are taking the first financing step toward doing it.
Preliminary third-quarter data from the Point Homeowner Remodeling Index show remodeling-related home equity demand slowing to its weakest quarterly reading since early 2024. The pullback follows two consecutive quarters of acceleration during the first half of this year.
Point’s index is based on homeowner inquiries for its home equity investment product that specifically identify renovation or remodeling as the intended use. Nearly 62.5% of Point’s HEI inquiries during the first two months of the third quarter referenced a remodel, down from 64.9% in the second quarter. The share remained above the 60.7% recorded in the third quarter of 2025.
Intent is stronger than financing activity
The slowdown stands in contrast to what homeowners say they plan to do. A separate Point survey conducted this spring found 65% of homeowners expect to remodel within 12 to 18 months. Among those planning projects, 62% expect to use something other than cash, 65% anticipate spending more than $10,000 and 18.6% expect costs above $50,000.
That gap between stated plans and financing inquiries matters for lenders, contractors and building-material suppliers. Homeowners may still want the work done, but elevated borrowing costs, construction expenses and economic uncertainty can delay the point at which a project becomes an actual transaction.
Point’s measure is not a census of U.S. remodeling and should not be read as one. It tracks inquiries to a single home-equity provider, and its state-level measures cover only states where Point offers home equity investments. An inquiry also does not have to become a funded transaction to be included.
Its value is timing. The index captures financing intent before construction begins, potentially offering an earlier signal than measures based on projects already underway or completed.
Southeast demand remains comparatively stronger
Point said remodeling interest has been strongest in parts of the Southeast. Indiana, Tennessee and Georgia posted the largest increases over the first three quarters of 2026 compared with 2025. West of the Rocky Mountains, Colorado, Nevada and Arizona were the only states showing accelerating interest in Point’s available data.
The company said no state in its dataset showed a year-over-year decline in remodeling interest, suggesting the third-quarter slowdown is more a loss of momentum than a broad collapse in renovation demand.
The index is seasonally adjusted, benchmarked to the first quarter of 2019 and based on quarterly changes in the share of Point inquiries that cite renovation. Point compares it with longer-lagging remodeling measures from the Harvard Joint Center for Housing Studies and John Burns Research and Consulting, while noting that the measures capture different stages of the remodeling cycle.
For the mortgage industry, the third-quarter reading is another reminder that the enormous amount of equity accumulated by homeowners does not automatically translate into borrowing demand. Owners may have substantial tappable equity and significant renovation plans while still delaying financing when the cost or economic outlook makes the project harder to justify.
