Homeowners prioritize home improvement projects that create useful space and provide long-term satisfaction
“As our home became the place where we did everything — work, school, sleep, eat — many of us hoped that the world would soon ‘return to normal,'” he said death Nelson, Senior Vice President of Strategic Partnerships at LightStream. “Now, after two years of living in a new way, homeowners are thoughtfully investing in lasting changes to not only accommodate new lifestyles, but to bring more functionality and emotional benefits to their homes.”
Home renovation plans are on the rise again to create or enhance functional space. The top home improvement projects are still kitchen (39%) and bathroom (36%) remodels. But the number of homeowners investing in large projects that create additional usable space and functionality in their homes has increased significantly:
- 20% plan to add homes, up from 12% in 2021
- 20% are planning basement/attic renovations versus 14% in 2021
- 40% are planning outdoor renovations versus 35% in 2021
Additionally, homeowners are turning to projects that support remote work/learning lifestyles:
- 25% of homeowners plan to upgrade technology (e.g. Wi-Fi, smart devices), up from 17% in 2021
- 19% improve home learning environments compared to 11% in 2021
“The pandemic has redefined our fundamental thinking about how we use our homes, what we expect and want from them,” Nelson said. A home study or a backyard escape route, more functional spaces are clearly a priority for many homeowners. We have new needs and we need new spaces to meet them.”
The survey also shows this HHomeowners focus on renovation projects that offer emotional fulfillment, not just a return on investment. Only one in three (34%) homeowners say they feel comfortable in their home. However 51% want to feel joy. Additionally, nearly one in three (29%) cited “satisfaction with a space for years to come” as a key reason they would invest in a 2022 project.
These emotional fulfillments are considered achieved
- 52% say memories with their family bring them the most joy in their home
- 43% attribute feeling happy to activities they can do while at home (e.g. exercising, working, playing games)
LightStream’s annual survey also quantifies this HHomeowners are eager to tackle renovations; 62% agree they are excited about the home improvement projects they could do. However, payment strategies differ markedly, as with those planning renovations in 2022.
- 60% intend to take advantage of savings, up from 66% in 2021
- 35% intend to use credit cards, up from 30% in 2021
- 23% intend to use a home equity line of credit, up from 9% in 2021
- 21% intend to take out a home improvement loan, up from 14% in 2021
- 17% intend to liquidate or make investments, up from 8% in 2021
However, 43% agree they would like to know more about how best to pay for home improvement projects. Wanting to learn more about financing options was a need expressed by all generations: Millennials (68%), GenZ (47%); GenX (43%) and Boomers (21%).
“There’s definitely a knowledge gap that people recognize when deciding how to pay for their renovations,” Nelson said. “People need to do their homework to avoid paying in a way that could significantly increase their costs,” Nelson said. “For example, while it can be tempting to finance a project with a credit card, high variable interest rates can add thousands of dollars to the overall cost of a project. Establishing home equity lines of credit can be time-consuming, and they are reliably the withdrawal of equity from a property that so many homeowners have worked diligently to repay. Tapping into savings or selling off-performing assets should be done with caution so as not to deplete liquidity that could be better used for other purposes. With a home improvement loan – like LightStream’s – it’s important to understand the interest rates, fees, terms and conditions Investigate services you receive as these can vary widely depending on the lender.”
LightStream is the nation’s leading online lender, offering financing in all 50 states. LightStream is recognized by the Better Business Bureau for its A+ rating and continues to lead the way as a trusted pioneer in the fintech market.
LightStream offers unsecured, no-fee, fixed-rate loans to customers with good credit for virtually any purpose, including home improvement.* Through a quick, easy online process, customers can receive funds as soon as an application is submitted. click here for important disclosures with information on same-day funding, LightStream’s Rate Beat program and its $100 Rental Experience Guarantee.
Truist Financial Corporation is a purpose-driven financial services company dedicated to inspiring and building better lives and communities. Founded by the historic merger of BB&T and SunTrust of equals, Truist has leading market shares in many of the country’s high growth markets. The company offers 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 asset management. headquarters in Charlotte, North CarolinaTruist is a top 10 US commercial bank with total assets of $541 billion away December 31, 2021. Trust Bank, member of the FDIC. Learn more at Truist.com.
1The 2022 LightStream Home Improvement Survey was distributed by Ipsos to 1,301 US homeowners January 4, 2022 and January 13, 2022 via an online survey. Quotas were established to provide a reliable and accurate representation of US homeowners aged 18 and over. The results of each sample are subject to sampling variability. The amount of variation is measurable and is affected by the number of interviews and the percentages expressing the results. The margin of error for this survey is +/- 2.7% at 95% confidence.
*LightStream loan terms, including APR, may vary based on loan purpose, amount, term and your credit profile. Lowest interest rates require an excellent credit rating. At least 25% of approved applicants who requested the lowest rate qualified for the lowest rate available, based on data from 10/01/2021 to 12/31/2021. The price is given with AutoPay discount. The AutoPay discount is only available before loan financing. Prices without AutoPay are 0.50 percentage points higher. Subject to credit approval. Conditions and restrictions apply. Advertised prices and conditions are subject to change without notice.
Truist Bank is an Equal Housing Lender. Member FDIC.
© 2022 Truist Financial Corporation. LightStream, Truist and the LightStream logo are service marks of Truist Financial Corporation. Truist Bank Lending Services.
SOURCE Truist Financial Corporation