Some homeowners pick remodels over moves

Summary

• Homeowners are increasingly choosing to remodel existing properties rather than relocate.
• HELOC utilization rates have risen since 2024 as interest rates remain below their 2023/2024 peaks.
• HELOC-funded spending on home-related purchases and services increased in June both year-over-year and relative to pre-pandemic levels.
• Spending on home services remains below the immediate post-pandemic surge but is gaining momentum.
• Bank of America internal data indicates that slightly lower interest rates have made borrowing more attractive compared to recent years.
• The analysis of domestic migration patterns uses a fixed sample of Bank of America customers with open accounts from 1Q 2023 through 2Q 2026.
• The migration analysis focuses on internal United States movements and does not capture international migration impacts.
• Spending data for households that moved in June covers the six-month period before and after the move using credit and debit card data from 2020-2025.
• Aggregated payments data includes total credit card, debit card, ACH, wires, bill pay, business/peer-to-peer, cash, and checks from US Retail, Preferred, Small Business, and Wealth Management clients.
• Small business clients in the report are defined as those with under $5mm in annual sales revenue.
• Overall total card spending growth includes the growth in the number of active cardholders, while per household spending growth isolates impacts from sample size changes.
• Per household card spending growth only includes households that complete at least five transactions with Bank of America cards in a month.
• Median household savings and checking balances are based on a fixed cohort of households with consumer deposit accounts from January 2019 through the current data month.
• Spending data is classified using Merchant Categorization Codes mapped to the North American Industry Classification System.
• Metropolitan Statistical Areas align with US Census Regions including the Midwest, Northeast, West, and South.
• The Sun Belt refers to the South and Southwestern states including Florida, Georgia, Texas, Arizona, and others.
• Generations are defined as Gen Z (born after 1996), Younger Millennials (1989-1995), Older Millennials (1978-1988), Gen Xers (1965-1977), and Baby Boomers (1946-1964).