Remodeling can cause more than a few headaches for homeowners. Losing the use of a bathroom, the kitchen, or any other space in a home for a few weeks can be a hassle to deal with. But it is a hassle an increasing amount of U.S. homeowners are ready to deal with.
According to the most recent Bankrate Money Pulse survey, 28 percent of U.S. homeowners have plans to remodel, expand, or improve their homes within the next 12 months. Millennials are the most likely to make home improvements in the next year as 37 percent of respondents age 18 to 29 have plans to remodel. People over the age of 65 represent the smallest portion interested in remodeling.
These numbers are not surprising as the past few years have shown a revitalized remodeling market. In nominal terms, annual home improvement spending is expected to set a record in 2016. This remodeling revival is not just in terms of smaller projects, but larger projects like entire bathroom and kitchen renovations, as well.
Among the most popular projects homeowners are expecting to take on in the coming year are renovating the home’s exterior (52 percent), installing new flooring (39 percent), and renovating a kitchen (30 percent). However, not all home improvements are equal, as many projects that homeowners are taking on are projects that are the most likely to earn a return of 60 percent or less when the home is sold. These projects include renovating a bathroom, adding a master suite, and installing wood-framed windows.
Despite the solid growth in home renovations, many homeowners are still a bit gun-shy about accessing a home’s equity to pay for improvements. Additionally, 6 percent of homeowners who plan to make renovations in 2016 say they will take out a personal loan to do so,