Home Remodeling is Booming: Here’s what your Neighbors are Doing

Kitchen and bath have always been popular remodeling choices, but even those saw a 40% jump in demand in June compared with a year ago. More people are cooking and eating at home, and kitchens are now even more the center of family life.

Home extensions and additions jumped 52%, and security and privacy also saw much greater demand with interest in fence installation and repairs up 166%.

Homeowners are likely getting extra incentive from the record high amount of home equity they now have. Home prices continue to gain, despite the economic downturn, as demand for housing soars.

Sheltering at home clearly influenced demand, as more than three-quarters of all U.S. homeowners said they had done some type of home improvement project during the pandemic, according to a recent survey by Porch.com, another remodeling platform. 

More than three-quarters also said they plan to take on a new project in the next 12 months. The top motivator was, “finally having the time,” according to the report. Next was adding value to the home and, finally, making the home “feel more cozy.” 

Decks -- One of the most popular projects this Summer!

With more people spending time at home, many are looking to make the most of it.

Some are taking on smaller home improvement projects on their own, and others are hiring contractors to build decks, outdoors spaces or additions.

Local businesses related to the home building and remodeling industry have said there has been an 30 percent increase in activity when compared to last year when the economy was chugging along.

“A lot of people were looking at it knowing they were going to be stuck at home, and saying ‘I am going to have a nice deck to sit on or an extra office space. … I am finally going to get this the way I wanted to do it.’ ”

We have seen a 30 percent increase in calls about decks and other home renovation projects. Most people aren’t going on vacation, so they are spending their money on their homes.

More homeowners want to make home improvements this year

Three in four homeowners are planning to make home improvements this year, boosting renovation spending by 27%.

The LightStream Home Improvement Trends Survey showed a boost in the share of home renovation projects, up from 73% in 2019 to 77% in 2020.

Outdoor remodels (47%) were the most popular among homeowners, encompassing plans for decks (45%), greenhouses and gardens (35%), and patios (34%). Among indoor renovations, bathroom (42%) and kitchen (38%) upgrades were the most popular.

"Our 2020 survey noted that 66% of homeowners say they'll stay in place for at least the next 10 years," said Todd Nelson, senior vice president of strategic partnerships at LightStream. "This helps explain record-low real estate inventories and higher home prices across the country."

As for why they are making these improvements, 60% said that they have an area of their house that they would be embarrassed to show guests visiting for the first time.

Meanwhile, 83% said that they have spaces they would renovate or build but just haven't gotten around to it, with 46% saying that the lack of funds is what's delaying them. Almost 65% said they would use their savings, while 33% said they would tap credit cards.