Since the start of the pandemic, 73% of homeowners have invested in a home improvement project, according to the 9th Annual LightStream Home Improvement Trends Survey. This year, however, the survey found homeowners are focused on investing in larger projects to make their home more “purposeful and joyful.”
The importance of home was amplified in new ways during pandemic times, when homeowners sought to accommodate lifestyle changes and add more functionality and enjoyment to their living spaces. According to the survey, home renovation plans are still on the rise in order to create or improve purposeful space. The top home improvement projects continue to be kitchen (39%) and bathroom (36%) remodels, but there has been significant growth in the number of homeowners investing in even larger projects to create additional space and functionality:
- 20% are planning home additions vs. 12% in 2021.
- 20% are planning basement/attic renovations vs. 14% in 2021.
- 40% are planning outdoor renovations vs. 35% in 2021.
Additionally, homeowners are pivoting toward projects that accommodate remote work/learn lifestyles:
- 25% of homeowners are planning to update technology (i.e. Wi-Fi, smart devices) vs. 17% in 2021.
- 19% are improving at-home learning spaces vs. 11% in 2021.
The survey also reveals that homeowners are focused on renovation projects that provide emotional fulfillment, not just a return on investment. Only one in three (34%) homeowners say they feel joyful in their home. However, 51% want to feel joyful. Additionally, nearly one in three (29%) cited being “happy with a space for years to come” as an important reason why they would invest in a 2022 project.
- 52% say memories with their family brings them the most joy in their home.
- 43% attribute feeling joy to activities they can do while they’re at home (e.g., exercise, work, play games).
The survey also quantifies that homeowners are eager to take on renovations; 62% agree they get excited about the home improvement projects they could do. However, payment strategies clearly vary:
- 60% intend to use savings vs. 66% 2021.
- 35% intend to use credit cards vs. 30% in 2021.
- 23% intend to use a home equity line of credit vs. 9% in 2021.
- 21% intend to take out a home improvement loan vs. 14% in 2021.
- 17% intend to liquidate or tap into investments vs. 8% in 2021.
If you’re considering a home improvement project, talk to your lender of financial advisor about the best way to finance it. You’ll want to arrive at the option that gets the job done without damaging your overall financial well-being.
