Home Renovations on the Rise: More Projects, Bigger Budgets in 2020
CHARLOTTE, N.C., Feb. 26, 2020 /PRNewswire/ -- Home improvement projects are up this year with more than three in four (77%) homeowners planning to renovate, an increase from 73% 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.
LightStream is a national online lending division of Truist. LightStream delivers unsecured loans with no fees to good-credit customers for practically any purpose, including home improvements. Financing is available in all 50 states. Through a simple online process, funds can be provided as soon as the same day an application is submitted. Click here for important disclosures, including a payment example as well as information on same day funding, LightStream’s Rate Beat Program and its $100 Loan Experience Guarantee.
Truist Financial Corporation (NYSE: TFC) is a purpose-driven company dedicated to building a better future for its clients, teammates and communities. With 275 years of combined BB&T and SunTrust history, Truist is one of the nation’s largest financial services holding companies offering a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending and wealth management. Headquartered in Charlotte, North Carolina, Truist serves approximately 10 million households with leading market share in many high-growth markets in the country. Truist Bank, Member FDIC. Learn more at Truist.com.
The LightStream Home Improvement Survey was conducted by Wakefield Research among 1,300 nationally representative U.S. homeowners, between January 7th and January 15th, 2020, using an email invitation and an online survey. Quotas have been set to ensure reliable and accurate representation of the US homeowner population, ages 18+. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 2.7 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. For complete survey methodologies, including weighting variables and subgroup sample sizes, please contact MediaRelations@LightStream.com.
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SOURCE Truist Financial Corporation