Sponsored Content: In a housing market with high demand but low supply, homeowners have turned to home improvement to make their space more comfortable.
According to a recent survey conducted by Discover® Home Loans, even though 59% of respondents have chosen to postpone their home improvement projects due to rising inflation and increased costs, 79% of homeowners still would rather renovate their current home than move to a different one.
What Kind of Renovations Are Homeowners Making?
Just five years ago, a typical home renovation might have been a kitchen or bathroom remodel. Classically, investing in these two areas offered the greatest increase in a home’s resale value.
But during the COVID pandemic, renovation priorities changed. With whole families at home all day to work remotely or go to school online, families focused on projects that would make their home more functional or livable. This included:
1. Converting rooms or spaces into home offices or classrooms
2. Adding extra bedrooms
3. Finishing the basement to provide extra living space
4. Changing surfaces for easier sanitation
5. Adding air filtration systems
6. Adding outside entertaining areas such as a patio and deck
As home prices soared and loan rates plummeted during the pandemic, people turned their sights inward to invest in what they already owned.
This sentiment continues into 2023 even with interest rates rising and forecasts for housing market looking more and more uncertain. However, a new addition to this list includes an increased interest in making “green” or eco-friendly improvements with 59% of homeowners in the same survey saying they planned on undertaking projects like this in the near future.
Where are People Getting Their Home Renovation Money?
For homeowners, a major source of available funds has been home equity. Whether owners were looking at a cash out refinance