Home renovation and remodeling means business. In 2016, just Home Depot and Lowes alone had combined annual sales of $159.6 billion. That’s what we call big business in Texas. Further stimulating the house renovation-remodeling business is the severe shortage of inventory of homes available, that is just now just two-thirds of normal.
Hearth, (they finance home renovation projects versus using a credit card) asked in a phone survey 2,000 Americans regarding their remodeling wishes and plans. The survey was completed on May 16, 2017. What are the top rooms for renovation if money was no object?
So where are the upcoming hot-spots going to be for the home renovation-remodeling markets? As usual, I invoke the TINSTAANREM axiom — There Is No Such Thing As A National Real Estate Market. Nor is there such a thing as typical renovation and remodeling market standard. The following table shows the top-10 markets (as a percentage of respondents) planning to begin a home renovation in the upcoming year. In addition to the renovation data from Hearth, respective job-growth rates for each state for the 12-months ending May 2017 are included. I conclude that the overall health of the state’s economy (as proxied by job growth) has no impact on renovation plans. Utah, for example, is the 6th highest state for planned renovations and the number one ranked state for job growth. Kansas on the other hand, is the 4th worst job growth state in the U.S. (based on percentage growth) but ranks 2nd best overall in planned renovations.
Following are the 10 lowest percentage states with respondents planning a renovation project in the coming year.
Other findings in the Hearth Renovation Survey included:
- 16 percent of Americans are thinking about renovating
- 11 percent have begun a renovation in the past five years
- 16 percent plan to begin one in the next year
- 17 percent are saving money for a future renovation
- 12 percent of Americans, overall use their credit card to finance renovations
- 62 percent prefer to pay for renovations using cash or savings
- 26 percent prefer using a loan
- 15 percent of Americans never borrow money
- 1 in 3 Americans worry they will not be able to afford renovations
Finally, since Hearth specializes in financing home renovations (in place of the credit card), the following two tables show the 10 states in which respondents planned most and least to user their credit card to finance the project.
To read the entire blog from Hearth on renovation plans and the top markets for both the coming 12-months and 2018 click https://www.gethearth.com/blog/2017-hearth-home-renovation-survey/
Hearth also has a home improvement calculator to help homeowners in analyzing paying for prospective renovations – click: https://www.gethearth.com/loans/quiz
Renovation is big business in America, and much bigger in some markets than others. How homeowners pay for these renovations can alter their total costs. Well worth some research.