New Renovation-HELOC Index Tracks Loan Demand Factors
Homeowners should be aware that lenders are using new permit-tracking tools to identify areas with high renovation activity.
Updated on Oct. 21, 2026 in Home Renovation
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Data analytics company Kukun has launched the Renovation-HELOC Index to pinpoint home equity loan demand by analyzing renovation permit activity across the country. The tool aims to help lenders better target homeowners interested in using home equity to fund renovations.
Why it matters
With home sales slowed by the lock-in effect, lenders are increasingly shifting their focus to home equity products. This index provides the localized data necessary to optimize marketing budgets and predict which homeowners are most likely to pursue renovations.
The index tracks 242,152 renovation permits and sets a market average score of 100 to measure relative loan demand. It excludes generic remodeling permits without specific project scopes to ensure the data accurately reflects active, high-value renovation intent.
The players
Kukun
A data analytics company that tracks property records and home renovation permits to provide insights for mortgage and real estate lenders.
Harvard Joint Center for Housing Studies
A research institution providing data on the national housing market and long-term projections for home remodeling spending.
The details
The index calculates demand by linking renovation permit data to property records at the ZIP code level using a formula that weights permits per 1,000 homes by project value. Because homeowners in expensive markets often perform smaller, less permit-intensive projects, the index provides a comparative look at where financing activity is concentrated. This allows lenders to move beyond broad national averages to identify specific areas with high interest in home equity products.
Timeline
2021: Benchmark year for peak home equity withdrawals.
- 2026-10-21
Kukun releases the new Renovation-HELOC Index.
2027: Projected end of the 0.5% annual growth rate for remodeling spending.
The Home Front
This index emerges as lenders adapt to the lock-in effect, which has significantly reduced the volume of traditional home sales. By focusing on home equity, industry participants are repositioning their strategy to capture business from homeowners choosing to renovate instead of move.
Homeowners should be aware that lenders are currently focusing on home equity products in high-demand areas. If you are planning a renovation, ensure you obtain specific permit documentation, as generic permits are now being excluded from key market indicators used by lenders.
The takeaway
The growth in remodeling is expected to remain modest, with economists projecting 0.5% annual spending growth through mid-2027. Homeowners should track their local index scores, as these values influence the marketing and loan offers homeowners receive from financial institutions.
Further reading
Learn more about local market dynamics and home improvement trends in the Home Renovation section.
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