How Stagflation Is Driving a Boom in Home Renovation Loans

In this episode, Lucas and Luna explore a surprising consequence of stagflation: the surge in home renovation lending. With existing home sales stuck near historic lows and mortgage rates hovering above 7 percent, homeowners are choosing to renovate rather than move. The hosts examine data from the latest Federal Reserve survey on bank lending, which shows home improvement loan originations up 23 percent year-over-year in Q1 2026. They also discuss why the average renovation project now costs $42,000 and how HELOC volumes have hit their highest level since 2008. Lucas ties the trend to broader inflation dynamics — rising labor and material costs are pushing renovation budgets higher — while Luna questions whether the renovation boom is durable or just a temporary response to a frozen housing market. The episode closes with a look at how home improvement spending might shift if the economy tips into recession. #Stagflation #HomeRenovation #HELOC #HomeImprovement #HousingMarket #MortgageRates #Inflation #ConsumerSpending #FederalReserve #Lending #ConstructionCosts #LaborCosts #ExistingHomeSales #RenovationBoom #EconomicTrends #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo