Almost one-third of homeowners are currently involved in home improvement projects. Nearly one-quarter plan to start a home improvement project in the next year. And the average home improvement spending is the highest it has been since Angi began tracking seven years ago.
Homeowners can get a home equity line of credit to finance home improvement projects. This is an alternative to personal loans and can allow for home improvement projects to be completed at lower interest rates. However, this type of loan can be more expensive than a personal loan and requires a longer underwriting process. It also requires a 20% equity investment in the home.
Some homeowners have been hesitant to undertake home improvement projects in recent years due to rising mortgage rates. However, a new study by the Harvard Joint Center for Housing Studies predicts that home remodeling will experience a major jump in popularity at the beginning of this year.
According to the study, home improvement projects are most popular among homeowners aged 19-55. The survey asked consumers about their recent home improvement projects and accomplishments. They were also asked whether they plan to do a DIY project or hire a professional. The majority of respondents (91 percent) plan to hire a professional for at least some of their projects. However, nearly one-third plan to complete their home improvement projects on their own.
Most of the survey’s respondents indicated that they plan to start or finish a home improvement project in the first half of 2021. The Axiom survey also asked consumers about recent projects. It found that outdoor living space was the most popular project. It was followed by a deck or patio.
One-fourth of survey respondents indicated that they would be planning more complex projects in 2021. A number of survey respondents indicated that they are planning to hire a professional to do more complicated projects.
Home improvement projects can increase the resale value of a home. However, if a project is too expensive, it may not pay for itself. Adding a bathroom can also be a costly investment. However, new bath installations can help improve livability and add resale value to a home.
A recent survey by Zillow found that nearly one-third of homeowners have a home improvement project on their to-do list for 2022. The Axiom survey also found that most survey respondents plan to work on an outdoor area.
When planning a home improvement project, homeowners should keep in mind that the more customized a project is, the less likely it will be to improve resale value. Homeowners can also opt to do a home improvement project over time, instead of all at once. This can help to eliminate the stress of paying off large credit card bills and loans. Depending on the project, it may also be advisable to use a home equity line of credit to finance the project.
The Harvard Joint Center for Housing Studies predicts that the home remodeling market will continue to expand, but at a slower rate than previous years. However, it is a positive sign for homeowners and professionals alike that home improvement popularity is still growing.