two-thirds of young homeowners surveyed plan to renovate this year, with spikes in their home’s equity creating more opportunities to invest in homes | Company
CHARLOTTE, North Carolina – (BUSINESS WIRE) – August 3, 2021–
With home buying increasingly competitive and the country’s aging housing stock, two-thirds of young homeowners surveyed plan to renovate this year, according to Bank of America’s Homebuyer Information Report 2021: Spotlight on Home Improvement and Equity. More and more, they have the capacity to do so, with their home equity reaching a new high of $ 20.2 trillion in the second quarter of 2020 1, meaning more homeowners can use the money. equity in their home to meet their goals.
According to a survey of 2,000 adults who currently own or plan to buy a home in the future, many are eager to refresh their living space. This is especially true for younger generations and Generation X. Almost two-thirds (65%) of young owners (18 to 43) and 60% of owners of Generation X (44 to 56) are likely to renovate this property. year, compared to 22% of older owners (57-75).
Greater reliance on the home as both a workplace and a family center has led many homeowners to tailor their homes to their needs. In fact, twice as many respondents say they are considering renovating their home as a way to make more use of their living space (67%) compared to those looking to increase the value of their home (33%) .
âTraditionally, home improvement projects have been measured in terms of return on investment, but we’re finding that the emotional connection to the home is just as important,â said Ann Thompson, specialist lending manager at Bank of America. âCustomizing and modernizing a home can create a place your family can enjoy for generations to come and help build long-term legacy and wealth. “
The desire to create a space to enjoy is reflected in the remodeling timelines. More than half (56%) of respondents plan to renovate before moving into their home or just when they move in, while 37% of respondents plan to renovate after living in the house for a bit. Only 7% plan to renovate when their home is put up for sale.
Undertake DIY projects
According to the National Association of Home Builders, the median age of the owner-occupied housing stock is 39 years. 2 In view of this, many homeowners may either want to update their accommodation, or need to replace worn-out parts of their homes – and many are taking the renovations into their own hands.
More than two in five (44%) young buyers surveyed say they would rather buy a home to renovate and improve it over time than buy a ready-to-move-in home. Meanwhile, seven in ten young homeowners (71%) have recently completed some DIY work, compared to 42% of older generations. Of those who did DIY – whether painting the walls a new color or rejuvenating the bathroom with improved hardware and fixtures – 50% learned by watching videos online and 39 % were inspired by TV shows such as HGTV.
Sustainability is especially important for the younger generations. Half of the younger generations want to add solar panels (51%) and energy efficient appliances (48%) as well as use sustainable or recycled materials (43%). In comparison, only a third of older generations want to add solar panels (33%) and energy efficient appliances (36%) or use sustainable or recycled materials (32%).
Fund home renovations
Despite the growing craze for home improvement projects, securing the funds for these projects is often the missing link. Only 41% of current young homeowners know they can access a home equity line of credit to finance major home improvements.
In reality, homeowners often combine a variety of funding sources. When making significant improvements, homeowners said they plan to pay for the work with one or more of the following: using their savings (62%), taking out a home equity line of credit (HELOC ) (32%), put it on a loan (24%) or by using money invested in the stock market (18%).
âWhile we’re seeing so many design ideas that we’d love to try, homeowners aren’t getting a lot of information on how to pay for these exciting changes,â Thompson said. âA home equity line of credit is an excellent financing choice for larger home renovations. “
While older homeowners (59%) are slightly more likely than younger homeowners (52%) to have used a HELOC for major home improvements, younger homeowners have used HELOCs for more varied purposes, such as pay tuition fees (14% vs. 2%). and buying a car (27% versus 12%). As for Gen X homeowners who have likely spent more time in their home and have more equity to tap into, they use HELOCs for home improvements (52%), car purchases (32% ) and payment of tuition fees (4%). .
Learn more about the financial flexibility of a home equity line of credit and Bank of America’s commitment to supporting clients on their homeownership journey, including additional information on home buyers and affordable resources for home ownership. Download the Bank of America app or visit bankofamerica.com.
About Bank of America Homebuyer Information
Sparks Research conducted a national online survey on behalf of Bank of America between February 18 and March 1, 2021. Sparks interviewed a national sample of 2,000 adults aged 18 and over who currently own or are considering a home. acquire it in the future. In addition, an increase of 185 surveys was conducted to oversample first generation homeowner populations (363 surveys in total). The margin of error for the national quota is +/- 2.2 percent at the 95 percent confidence level. The selected questions allowed respondents to choose more than one answer, resulting in answers that could amount to more than 100 percent.
Bank of America helps clients create pathways to home and car ownership, providing them with access to credit to meet a wide range of financing needs, including mortgage loans for the buying or refinancing a home, home equity lines of credit, auto loans and a wide variety of credit cards. Bank of America offers a distinctive customer experience, through:
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individuals, small and medium businesses, and large corporations with a full range of banking, investing, asset management and financial products and services. other financial and risk management products and services. The company provides unparalleled convenience in the United States, serving approximately 66 million personal and small business customers with approximately 4,300 retail financial centers, approximately 17,000 automated teller machines and award-winning digital banking services with approximately 41 million active users, including around 32 million mobile users. Bank of America is a global leader in wealth management, investment and investment banking and trading across a broad range of asset classes, serving businesses, governments, institutions and individuals across the whole world. Bank of America provides industry-leading assistance to approximately 3 million small business households through a range of innovative and easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation (NYSE: BAC) shares are listed on the New York Stock Exchange.
1State of the Nation’s Housing 2020, Harvard University Joint Center for Housing Studies
2The aging housing stock, NAHB Eye on Housing
View source version on businesswire.com:https://www.businesswire.com/news/home/20210803005561/en/
CONTACT: Journalists can contact:
Susan Atran, Bank of America
KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA
INDUSTRY KEYWORD: FINANCING OF PROFESSIONAL BANKING SERVICES
SOURCE: Bank of America
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PUB: 08/03/21 09: 00 / DISC: 08/03/2021 09:02