The pandemic spawned a drive to spruce up the home and that desire is continuing. Half of U.S. homeowners recently surveyed say they plan to spend more on home improvements in 2021 than they did last year, according to the latest BMO Real Financial Progress Index, a quarterly indicator measuring consumer sentiment about finances.
Renovation projects are expected to continue to rise too. Two-thirds of more than 2,500 U.S. homeowners surveyed said they plan to tackle home improvements this year, the index shows.
Many homeowners are using cash to complete these home renovation projects. Fifty percent of homeowners said they were using cash to pay for these projects, followed by credit cards (24%), line of credit (12%), and loans (12%), the index shows.
Real estate pros could help as this remodeling wave continues by offering homeowners information into how the renovations they do can affect their home’s value. For example, kitchen and bathroom renovations tend to offer some of the highest returns on investment. The National Association of REALTORS®’ Remodeling Impact Report may be able to offer insights.
“We have seen a lot of change in the housing market since the beginning of the pandemic—record low interest rates, incredible demand, and more people working from home,” says Mark Shulman, head of consumer lending at BMO Harris Bank. “Together, these factors are incentivizing existing homeowners to invest in their current home.”
A separate report from HomeAdvisor revealed the following top 10 household projects in 2020:
- Bathroom remodels
- Installing new flooring
- Kitchen remodels
- Painted exteriors
- Smart home device installations
- New roofing
- Installing a deck or porch
Read more about the home improvement boom:
Pandemic Fuels Wide Range of House Projects
Home Improvement Is Good for Your Mental Health, Survey Says