Top Australian suburbs where homeowners are renovating instead of moving
More Aussie homeowners are staying put and putting their efforts into turning their kitchens, backyards and garages into DIY gold.
New figures from digital lender MoneyMe show and Craigieburn in Melbourne's north has claimed the title of the nation's renovation capital, topped the list for personal renovation loan applications, with locals borrowing an average of $22,400 to upgrade rather than relocate.
It's a trend sweeping the country, as homeowners in Western Sydney, South East Queensland and coastal Western Australia opt to improve instead of upsize, spurred on by steep property prices, rising stamp duty and soaring relocation costs.
According to Hipages data, extension jobs have jumped by 37 per cent in New South Wales, while granny flat builds are up 20 per cent nationally in the past 12 months to January 2025.
Ikea kitchen installations are also booming — up 23 per cent in NSW, 32 per cent in WA, and 12 per cent in Victoria — as homeowners choose affordable renovations over high-end overhauls.
NSW led the nation for both the value and volume of personal renovation loans, with the average size hitting $22,640.
ABS figures show the total average home renovation loan in the state climbed to $225,664, up nearly $20,000 in just a year.
Hipages chief revenue officer Robert Tolliday said the trend reflected a mix of financial pressure and lifestyle changes.
'We're seeing a real surge in jobs like kitchen upgrades and granny flats targeted improvements that make a big difference without the cost of moving,' Mr Tolliday said.
'The transaction costs involved with relocating such as stamp duty, agents' fees, (and) legal costs all add up. For many people, it's just smarter to stay put and invest in what you already have.
'Granny flats in particular are growing fast. People are using them for elderly parents, adult kids, or even as rental income, they're a really flexible solution.'
Mr Tolliday said the appetite for affordable, high-impact upgrades like Ikea kitchens was particularly strong in outer metro suburbs.
In Victoria, Ikea kitchen installs rose 12 per cent, while extension and addition jobs fell 3 per cent, bucking the national trend.
Renovation activity remained strongest in Craigieburn, Point Cook and Hoppers Crossing, along with Bayside and Melbourne's southeast.
In Queensland, the most in-demand areas were the Gold Coast, Brisbane North and South, Sunshine Coast, and the Redcliffe and Caboolture regions.
MoneyMe chief sales and marketing officer Richard Bray said renovation loans were becoming especially popular with younger buyers in outer-suburban growth corridors.
'Many first-home buyers can't afford the perfect home straight away, so they buy something affordable and renovate as they go,' Mr Bray said.
'We're seeing this trend particularly in fringe suburbs, where buyers are picking up homes with potential, then funding upgrades like bathrooms, kitchens and landscaping.'
In Craigieburn, Ray White auctioneer Trish Orrico said renovation was simply part of the local mindset.
'It's a great area, I've lived here for 18 years and renovated my own home. I've chosen to improve rather than move,' Ms Orrico said.
'There's still land being released and it's not a fully established market yet, but once it is, I think we'll see even stronger capital growth.
Buyers' advocate and host of The Buyers Bible podcast Amy Lunardi said more clients were becoming cautious about large-scale renovations but still keen to add value where they could.
'With the cost of building so high, many buyers now prefer homes that have already been renovated,' Ms Lunardi said.
'That said, if the layout and size are right, and it's in the right location, people are happy to do cosmetic updates later, just not the big structural stuff.'
But Ms Lunardi warned that many Australians still underestimate how much time and money renovating really takes.
'Television shows make it look easy, but it's often a longer and more expensive process than people expect,' she said.
'I always tell clients to research costs and timelines properly, especially if they plan to live through the works.'
Average renovation loan size by state and national demand share
State Average Loan Size (MoneyMe) Loan Demand Share (MoneyMe) Ikea Kitchen Install Growth Extension Job Growth Granny Flat Job Growth
New South Wales $22,640 28% 23% 37% 20%
Victoria $22,491 27% 12% -3% 20%
Queensland $20,677 21% N/A 20% 20%
All Other States $20,772 24% +32% (WA) +36% (WA), -24% (SA) 20%
Top 10 Aussie suburbs for home renovation loan applications
Rank Suburb State
1 Craigieburn VIC
2 Point Cook VIC
3 Hoppers Crossing VIC
4 Cranbourne VIC
5 Alexandra QLD
6 Campbelltown NSW
7 Liverpool NSW
8 Blacktown NSW
9 Box Hill NSW
10 Frankston VIC
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