Homeowner Savings Most Used to Fund Home Projects

by Kacey Larsen

ATLANTA —As the remodeling market continues to improve, more homeowners are taking on home renovation and maintenance projects, and are open to spending more money than last year. According to its third annual survey, LightStream, found 62 percent of homeowners plan to spend on home improvement projects in 2016, an increase of almost 9 percent compared to 2015. The survey of homeowners was conducted online by Harris Poll in February 2016.

The desire to update a home’s look, features and technology is the main motivation to remodel. The trend in outdoor living continues to dominate as the number one home improvement with 45 percent investing in decks, patios or landscape renovations. Bathroom remodels (31 percent); upgrades to roofs, windows, HVAC and other technology systems (30 percent); and kitchen remodels (23 percent) round out the top four projects.

The amount that homeowners are looking to spend has also increased from years past. Overall, homeowners planning renovations this year will spend an average of $6,239 as compared to $5,037 in 2015. Forty percent plan to spend $5,000 or more (up from 36 percent in 2015) and 22 percent plan on spending $10,000 or more (up from 18 percent last year). Sixty-two percent of homeowners planning renovations will pull from their savings. Credit cards will be used by 25 percent of homeowners; home equity lines of credit (9 percent), loads (6 percent) and investments (6 percent) are also cited in homeowner payment strategies.

LightStream is the online lending division of SunTrust Bank.

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