Home Renovations on the Rise: More Projects, Bigger Budgets in 2020
H
ome improvement projects are up this year with more than three in four (77pc ) homeowners planning to renovate, an increase from 73pc in 2019, according to the seventh annual LightStream Home Improvement Trends Survey, conducted by Wakefield Research.*
U.S. homeowners plan to spend an average of $11,473 on renovations, an increase of 27% from 2019 ($9,006.60). Millennial homeowners plan to do the most work and spend more than others, with 92% doing projects at an average cost of $13,838 - more than any other generation.
Our 2020 survey noted that 66% of homeowners say they'll stay in place for at least the next 10 years, said Todd Nelson, senior vice president of strategic partnerships at LightStream. This helps explain record-low real estate inventories and higher home prices across the country.
What do homeowners want for these forever homes?
Outdoor remodels (47%) top the list overall, encompassing plans for decks (45%), greenhouses/gardens (35%) and patios (34%).
Bathroom (42%) improvements are the most popular indoor renovations.
Kitchen (38%) upgrades are close behind.
As for why they are making these updates, the survey found that three out of five homeowners (60%) have an area they would be embarrassed to show guests visiting for the first time. Eighty-three percent say they have spaces they would renovate or build, but just haven't gotten around to it.
Why the delay? The number one reason homeowners put off home remodeling projects is lack of funds (46%). Those deciding to move forward this year are divided on how they plan to pay for their projects. Nearly two-thirds (65%) will use savings, while a third (33%) will tap credit cards. Among credit card users, 19% said they did not know how long it would take to pay off their balances. For consumers who are reluctant to dip into savings or concerned about the high interest rates many credit cards charge, home improvement loans are being seen as an increasingly popular payment option.
LightStream funded 40% more home improvement applications in 2019 than the previous year, continued Nelson. Consumers are recognizing that an unsecured consumer loan can be a smart financial tool, with an easy application process, low fixed interest rates, longer terms, fast funding and in our case, no fees.
Whatever the project, whatever the vision, a record number of homeowners see 2020 as the year to confidently take on overdue projects and finally get the most out of their homes.
More information about LightStream and the 2020 Home Improvement Survey can be found at LightStream.com. Additional insights on 2020 home improvement trends can also be found on The LightStream Blog.
✔️ Home Renovations on the Rise: More Projects, Bigger Budgets in 2020
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