Homeowners are bullish and more are planning to complete home improvement projects in 2020 than in 2019, according the 2020 Home Improvement Trends Study by LightStream. Seventy-seven percent of respondents are planning to renovate in 2020, a 4% increase from the 2019 survey.
The survey, conducted by Wakefield Research, finds U.S. homeowners plan to spend an average of $11,473 on renovations, a 27% year over year increase from the survey a year ago. Millennial homeowners are planning to do the most work in 2020 and outspend other demographics, according to the survey. More than nine in ten millennials are planning to complete a home improvement project in the year ahead at an average cost of $13,838 – far more than any other generation.
"Our 2020 survey noted that 66% of homeowners say they'll stay in place for at least the next 10 years," Todd Nelson, senior vice president of strategic partnerships at LightStream, an online lending division of Truist, said in a public statement. "This helps explain record-low real estate inventories and higher home prices across the country."
The most popular projects for homeowners planning to renovate in 2020 are outdoor remodeling projects, with nearly half of respondents planning to improve the exterior of their homes. Outdoor projects encompass decks, greenhouse and garden projects, and patios.
Bathroom renovations are expected to be the most popular indoor project, with more than two in five respondents indicating plans to update their bathrooms. Kitchens are forecast to be the second most popular interior room for renovations, according to the LightStream survey.
A key driver for planned renovations is embarrassment. According to LightStream, three in five homeowners said they have an area they would be embarrassed to show guests visiting their homes for the first time.
Four in five homeowners said they have an area in their home they would like to renovate, but just haven't gotten around to it yet. Nearly half of homeowners who have put off remodeling projects cite funds as the chief reason for their delay. Among homeowners planning to complete projects in 2020, two-thirds plan to use savings, while one-third will tap into their credit cards, according to LightStream.
The LightStream Home Improvement Survey was conducted by Wakefield Research among 1,300 nationally representative U.S. homeowners during early January 2020. Quotas have been set for the online survey to ensure reliable and accurate representation of the U.S. homeowner population over the age of 18.
