Homeowners prioritize home improvement projects that create useful space and provide long-term gratification

“When our homes became where we did everything – work, study, sleep, eat – many of us hoped the world would soon return to normal,” said Todd Nelson, senior vice president of strategic partnerships at LightStream. “Now, after two years of living a new way, owners are consciously investing in permanent changes to not only accommodate new lifestyles, but also to add more functionality and emotional benefits to Their houses.”

Home improvement plans are back to create or improve a useful space. The top home improvement projects continue to be kitchen (39%) and bathroom (36%) renovations. But there has been a significant growth in the number of homeowners investing in large projects that create usable space and additional functionality in their home:

  • 20% are planning house extensions compared to 12% in 2021
  • 20% are planning basement/attic renovations compared to 14% in 2021
  • 40% are planning exterior renovations compared to 35% in 2021

Additionally, owners are turning to projects that accommodate remote work/learning lifestyles:

  • 25% of owners plan to update technology (i.e. Wi-Fi, smart devices) compared to 17% in 2021
  • 19% are improving home learning spaces compared to 11% in 2021

The pandemic has redefined our fundamental thinking about how we use our homes, what we expect and what we expect from them,” Nelson said. “Whether it’s a new bedroom to house a living parent or returning adult child, a home office, a home study room, or a backyard escape, more useful spaces are clearly a priority for many owners. We have new needs and we need new spaces to meet them. »

The survey also reveals that hHomeowners focus on renovation projects that provide emotional fulfillment, not just return on investment. Only one in three homeowners (34%) say they feel happy in their home. However, 51% want to feel happy. Additionally, nearly one in three (29%) cited being “satisfied with a space for years to come” as an important reason they would invest in a project in 2022.

These emotional accomplishments are achieved as

  • 52% say memories with their family bring them the most joy in their home
  • 43% attribute the feeling of joy to activities they can do while at home (e.g. exercise, work, play games)

LightStream’s annual survey also quantifies that hthe owners are eager to undertake renovations; 62% agree they are excited about home improvement projects they could do. However, payment strategies clearly vary, such as among those planning renovations in 2022.

  • 60% intend to use their savings compared to 66% in 2021
  • 35% intend to use credit cards compared to 30% in 2021
  • 23% intend to use a home equity line of credit compared to 9% in 2021
  • 21% intend to take out a renovation loan compared to 14% in 2021
  • 17% intend to liquidate or operate investments compared to 8% in 2021

That said, 43% agree they would like to know more about the best way to pay for home improvement projects. Wanting to know more about financing options was a need expressed by all generations: Millennials (68%), GenZ (47%); GenX (43%) and Baby Boomers (21%).

“There’s definitely a lack of knowledge that people recognize when deciding how to pay for their renovations,” Nelson said. “People need to do their homework to avoid paying in a way that could significantly increase their costs,” Nelson said. “For example, while it may be tempting to finance a project with a credit card, high variable interest rates can add thousands of dollars to the overall cost of a project. on taking equity from a property that so many owners have worked diligently to pay off. Dipping into savings or selling high-performing investments should be done with caution, so as not to deplete cash that could be better used for other purposes. home improvement loan, such as those provided by LightStream, it is important to investigate the rates, fees, terms and service you will receive, as these can vary widely from lender to lender. »

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LightStream provides fixed rate, no-fee unsecured loans to customers with good credit for virtually any purpose, including home renovations.* Through a quick and easy online process, customers can receive funds as soon as same day an application is submitted. Click on here for important disclosures with same-day funding information, LightStream’s Rate Beat program and its $100 Lending experience guarantee.

ABOUT TRUIST
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist holds leading market share in many high-growth markets nationwide. The company offers a wide range of services, including retail, small business and corporate banking; asset Management; capital markets; commercial real estate; corporate and institutional banking; Assurance; mortgage; Payments; specialized loans; and wealth management. Based at Charlotte, North CarolinaTruist is a top 10 US commercial bank with total assets of $541 billion from December 31, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.

1The 2022 LightStream Home Improvement Survey was distributed by Ipsos to 1,301 US homeowners, among January 4, 2022 and January 13, 2022 through an online survey. Quotas have been established to ensure a reliable and accurate representation of the US population of homeowners ages 18 and older. The results of any sample are subject to sampling variations. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. The margin of error for this survey is +/- 2.7% at 95% confidence.

*LightStream loan terms, including APR, may differ depending on loan purpose, amount, term and your credit profile. The lowest rates require excellent credit. At least 25% of approved candidates applying for the lowest rate qualified for the lowest rate available based on data from 01/10/2021 to 31/12/2021. The fare is shown with the AutoPay discount. The AutoPay rebate is only available before the loan is funded. Rates without AutoPay are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and conditions are subject to change without notice.

Truist Bank is an equal housing lender. FDIC member.

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