During the early days of the COVID-19 pandemic, homeowners nationwide used their spare time to tackle overdue home projects. As the year continued, a combination of factors, including low interest rates and rising home prices, helped fuel a surge in home renovations, improvements, and remodels—trends that continued into 2022, despite the COVID-19 recession.

Analyzing the latest data from the FFIEC, U.S. Census Bureau, and Zillow, researchers ranked metros and states according to the number of home improvement loans per 1,000 owner-occupied households. These are the key takeaways from the report on Georgia:

• Homeowners in Georgia took out 7.0 home improvement loans per 1,000 owner-occupied households in 2022.

• The median home improvement loan amount in Georgia was $85,000.

• Nationally, homeowners took out 8.8 home improvement loans per 1,000 owner-occupied households during that time period, at a median loan amount of $75,000.

After falling by an inflation-adjusted 24% from a high in 2006 to a low in 2011 as a result of the Great Recession, home improvement spending growth got back on track between 2012 and 2019 as the housing market recovered. However, spending then grew sharply during the peak of the COVID-19 pandemic before plateauing in 2022. According to loan-level data from the Home Mortgage Disclosure Act, the number of single-family home improvement loans originated climbed to nearly 750,000 in 2022, up from approximately 550,000 in 2021.

Typically, home improvement spending falls during economic downturns; however, the COVID-19 recession proved to be an exception to the rule. One key reason is that the early stages of the pandemic disproportionately impacted lower-wage workerswho were less likely to own homes. Meanwhile, higher-income homeowners didn’t suffer the same level of job losses or reduced wages but benefited from reduced spending on things like eating out and travel, which freed up funds for other expenses. With many of these homeowners spending more time at home, they were eager to create home offices, gyms, and backyard oasesfeaturing decks, outdoor kitchens, and pools.

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