With home buying increasingly competitive and the nation’s housing inventory aging, two-thirds of younger homeowners surveyed plan to renovate this year, according to Bank of America’s 2021 Homebuyer Insights Report: Home Improvement and Equity Spotlight.
Home renovations, says Bank of America, have become increasingly more possible with home equity reaching a new peak of $20.2 trillion in the second quarter of 2021.
“Traditionally, home improvement projects have been measured through the lens of return on investment, but we’re seeing that the emotional connection to one’s home is just as important,” said Ann Thompson, specialty lending executive at Bank of America. “Customizing a home and bringing it up to date can create a place your family can enjoy for generations to come and help build a legacy and long-term wealth.”
According to a survey of 2,000 adults who currently own a home or plan to in the future, many are eager to refresh their living space. This is particularly true for younger generations and Gen X.
Nearly two-thirds (65%) of younger homeowners (ages 18 to 43) and 60% of Gen X homeowners (ages 44 to 56) are likely to renovate this year, compared to 22% of older homeowners (ages 57 to 75).
Greater reliance on the home as both a workplace and a family center has led many owners to tailor their homes to their needs. In fact, twice as many respondents say they’re approaching home improvements as a means of greater enjoyment in their living space (67%) compared to those seeking to increase their home’s value (33%).
The desire to create a space to enjoy is reflected in remodeling timelines. More than half (56%) of respondents plan to remodel before moving into their home or right when they move in, while 37% of respondents plan to remodel after living in the house for a bit. Only 7% plan to remodel when putting their home up for sale.