The pandemic spawned a drive to spruce up the home and stats are showing that the desire is showing no signs of slowing down. 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. The index shows that a whopping two-thirds of more than 2,500 U.S. homeowners surveyed said they plan to tackle home improvements this year.
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. And The National Association of REALTORS®’ Remodeling Impact Report indicates that many of the renovations homeowners are doing can positively impact their home’s value. For example, kitchen and bathroom renovations tend to offer some of the highest returns on investment (ROI).
“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:
- Painting
- Bathroom remodels
- Installing new flooring
- Landscaping
- Kitchen remodels
- Painted exteriors
- Smart home device installations
- New roofing
- Fencing
- Installing a deck or porch
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