Homeowner equity has considerably grown since the bottom of the housing cycle, encouraging more Americans to spend higher on home improvements and consequently, boosting real estate activities. The Huffington Post has the full story:
This year, homeowners are opening their pocketbooks wider when it comes to home improvement. According to HomeAdvisor’s 2017 True Cost Report, homeowners tackled more home improvement projects from February 2016 through February 2017 than in the 12 months prior. And, they spent almost 60 percent more for a typical household in a single year.
Various conditions are fueling the surge in home improvement. Primarily, homeowner equity has doubled since the bottom of the housing cycle — in turn making homeowners feel wealthier and more confident, giving homeowners easy access to home improvement loans and allowing millions of previously upside-down mortgage holders to sell their homes.
As a result, more Americans are improving their current homes or moving into new homes. And the increase in real estate activity is triggering home improvement activity on both the seller and buyer sides of the equation (i.e., the seller, who is getting the house spruced up to show, and the new owner, who wants to add their own personality to the newly purchased home).
From a regional standpoint, homeowners in the West and Northeast are spending the most on home improvement. And, because they’re accruing some of the highest equity, they are also taking out the most home equity loans to complete projects.
From a generational standpoint, baby boomers are doing more home projects — and spending more money, both in aggregate and on a per-household basis — than any other group of homeowners. The millennial generation is trailing close behind.
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