Homeowners in some Aussie suburbs are spending over $20,000 on renovations on average, according to new research.
The data from fintech lenders MoneyMe has revealed its Aussie customers are borrowing an average of $17,528 to renovate their homes, with the money often going into kitchens, bathrooms and fresh paint over structural overhauls.
Australians are increasingly choosing smaller-scale cosmetic upgrades, often funded through personal loans. It’s a move buyer’s agents say can deliver value in the property market.
The choice to make smaller home improvements may also be motivated by lower disposable incomes and surging labour and construction costs in 2026, both of which have been exacerbated by fuel shortages and successive rate cuts.
Renovations in one Aussie suburb cost over $26,000 on average. Picture: iStock
The top spending suburbs were largely outer ring areas of capital cities, where more affordable housing is available.
According to MoneyMe, these suburbs have high proportions of families, first-home buyers and upgraders, who may consider improving an existing property an alternative to moving.
Six of the 10 highest spending suburbs were located in Melbourne’s outskirts, suggesting Victorian owners spend more improving their home’s value than anyone else in the country.
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This home Oppy Cres, Hoppers Crossing, recently sold for $500,000
The property required “significant work” and was marketed as “suitable for major renovation”
In Hoppers Crossing, in Melbourne’s southwest, an average of $24,589 is loaned out for home improvements.
The median house price of Hoppers Crossing is $688,000, well under Melbourne’s median house price of $1.02m.
Recent sales show homes in the area can be older builds, marketed for their renovation or development value.
Homeowners in Cardinia are the biggest spenders in Australia on home improvements, forking out an average of $26,764.
Located 52km southeast of Melbourne, Cardinia is an emerging suburb which recorded a population of just 342 in 2021.
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This home on Gibson Ave, Casula, sold for $1.06m in March
The home was marketed for its “exciting future potential”
The story is similar in Casula, in Sydney’s south west, where the average home is valued at $300,000 less than Sydney’s $1.64m median.
Homeowners in Casula are NSW’s biggest renovators, loaning an average of $20,866.
Elsewhere in the country, Alberton had the priciest renos in South Australia, at an average of $13,729.
In the West, Perth’s Armadale topped the renovation spend in WA, with an average loan amount of $19,825.
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Data reveals buyers are favouring cosmetic over structural changes. Picture: iStock
As borrowers become more cost-conscious, buyers agents say the renovation playbook is shifting towards less structural overhaul and more targeted cosmetic upgrades that deliver buyer appeal.
Melbourne buyers agent Mark Earle said buyers “don’t want projects anymore”.
“Buyers are worried about the cost, the stress, and the risk of a renovation blowing out,” the Buxton Sandringham director said.
“They want something they can move straight into.”
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Mark Earle and Rasti Vaibhav. Pictures: Supplied
Sydney buyer’s agent Rasti Vaibhav said buyer preferences were similar in NSW.
“Move-in ready is still the magic phrase,” he said.
“Buyers are busy, they’re cautious, and they don’t want to manage trades.
“If they can afford it, they’ll choose the home where the main jobs are already done.”
Mr Vaibhav, the CEO of Get RARE Properties, said that cosmetic improvements often influenced buyer perception more immediately than structural changes.
“It’s less about over-the-top luxury and more about clever, practical upgrades,” he said.
“If a renovation improves how the home is lived in, whether for entertaining, working from home, or low maintenance, then buyers are generally happy to pay more.”
TOP 10 SUBURBS BY HOME IMPROVEMENT LOAN APPLICATIONS
| Suburb | State | Average Loan ($) |
| Cardinia | VIC | 26,764 |
| Hoppers Crossing | VIC | 24,589 |
| Botanic Ridge | VIC | 22,531 |
| Craigieburn | VIC | 21,201 |
| Casula | NSW | 20,866 |
| Brookfield | VIC | 20,013 |
| Armadale | WA | 19,825 |
| Cocoroc | VIC | 16,914 |
| Coodanup | WA | 15,448 |
| Alberton | SA | 13,729 |
Source: MONEYME
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