The home improvement industry continues to regain strength as many homeowners are looking to complete home remodeling or maintenance projects this year. In fact, more than half of homeowners (57%) plan to spend money on home improvement projects, according to an annual survey by LightStream, an online lending division of SunTrust Banks, Inc.
The most popular projects will focus on the outdoors, with 43% investing in improvements including decks, patios, or landscape remodels. Bathroom remodels (29%) and kitchen remodels (26%) also remain popular.
Updating a home’s look, features and technology are driving 52% of renovation plans, followed closely by repairs (49%). Interestingly, family needs across generations are also motivating change: five percent say they are remodeling to suit a growing family and 3% are accommodating aging parents.
But just how much are homeowners willing to spend on enhancements?
More than one third (36%) plan to invest $5,000 or more, with a solid 18% spending more than $10,000.
When it comes to paying for these projects, more than half of homeowners say they will tap savings (59%). Many plan to use credit cards (30%).
Seven percent will look to secure a home improvement loan. Home equity lines of credit are also cited as a financing option (9%).
According to the second quarter 2014 Zillow Negative Equity Report, nearly 35% of homeowners do not have sufficient equity in their homes to leverage.
Some homeowners, even when using savings, choose to finance part of their renovations if it makes financial sense. Like 4% of those surveyed who are planning pools this year, Michael and Michelle Flick had long anticipated enhancing their backyard and had saved for a pool.
They planned to add an enclosure as a “phase two project,” once they rebuilt their savings.