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Jun 7, 2016

Homeowners to Up Renovation Spending in 2016

A new report by LightStream, the online lending division of SunTrust Bank, finds that more homeowners will pursue renovation projects in 2016, and they plan to increase the amount they spend.

A new report by LightStream, the online lending division of SunTrust Bank, finds that more homeowners will pursue renovation projects in 2016, and they plan to increase the amount they spend. 

The third annual survey says 62 percent of homeowners will embark on home improvement projects in 2016, an increase of roughly 9 percent compared to 2015.

Overall, homeowners planning renovations this year will spend an average of $6,239, compared to $5,037 in 2015, the company says. “About 40 percent said they would spend $5,000 or more and 22 percent would spend $10,000 or more,” says Todd Nelson, LightStream business development officer.

A desire to update a home’s look is the primary driver for renovations. LightStream, which offers unsecured loans (between $5,000 and $100,000) to consumers with good credit, says the types of projects homeowners plan to pursue include bath remodels, patios, decks, roofs, windows, HVAC, and solar panels.

“The trend in outdoor living continues to dominate as the No. 1 home improvement project, with 45 percent investing in decks, patios, or landscape renovations,” the report says. “Bathroom remodels (31 percent); upgrades to roofs, windows, HVAC, and other technology systems (30 percent); and kitchen remodels (23 percent) round out the top four projects.”