Key facts
- The Renovation-HELOC Index uses building permit data for renovations valued at $40,000 or more.
- The index is benchmarked to a market average of 100, with higher scores indicating greater demand.
- Homeowners typically apply for HELOCs seven to eight months into a renovation project.
- California led in ADU construction in Q3 2026, building nearly 26,000 units.
Mortgage lenders are exploring home equity products as traditional deal volumes are expected to decline. Homeowners in the U.S. held $35 trillion in equity at the end of 2024, with a significant portion considered tappable. Kukun, a California-based company, has launched its Renovation-HELOC Index to help lenders identify homeowners likely to use their equity for renovations.
The index uses building permit data and property totals to score areas based on renovation demand. Permits valued at $40,000 or more are considered, and the ratio of permits per 1,000 homes is weighted by renovation value. Kukun has been collecting permit data for about 10 years and observed a correlation between HELOCs and renovation permits.
The inaugural report showed California leading in renovation permits with 50,897 in Q3 2026, followed by Florida and Texas. These states also led in HELOC originations in 2024. The analysis also highlighted that a few ZIP codes often account for the majority of renovation activity in metro areas, and that not all large renovation projects are in wealthier neighborhoods.