Home Improvement Loans: Renovate Now, Pay Later

In KBRA’s 2024 publication on the burgeoning ABS home improvement (HI) sector, we noted full-year (FY) 2023 issuance of $3.5 billion (see Trends in Home Improvement ABS). That figure has since climbed 67% to $5.8 billion in 2024, with more than $2.5 billion already issued in Q1 2025. As noted in our recent report, although the impact of potential tariff-induced economic turbulence remains difficult to dimension, the sector is expected to continue benefiting from the current interest rate environment, elevated home prices, and aging housing stock.¹ In…