Smart homes, green building, HGTV - oh my! The increasing popularity of these trends coupled with the healthy housing market stimulate continued growth of the home improvement industry. Expected to grow by an average of 2% each year through 2025 (inman), the home improvement industry has shown annual per-homeowner spending increases in the thousands. According to HomeAdvisor, the average homeowner in 2016 spent $5,157 on home improvement – an increase of nearly $2,000 from the previous year.
To help sustain this incredible growth, more and more companies are offering financing options to their customers. Mortgage interest is on the rise and home prices are increasing, leaving new home buyers with less cash for home improvement. Financing allows home improvement professionals to accommodate the budgets of their clients and provides homeowners with a solution to project-budget conflicts.
Higher home prices are a large contributor to the increased interest in home improvement. Increased home value means a higher return on investment (ROI) for many projects, which is appealing to any homeowner planning to sell their property in the future. Among the top ten projects with the highest ROI according to Remodeling Magazine are attic insulation, kitchen remodeling, siding replacement, entry door upgrades, and window replacement. Coming in at number eleven is roof replacement – a great consideration for spring!
Regardless of why homeowners decide to make changes to their property, financing enables them to budget appropriately. With financing, homeowners can complete high-ROI projects that increase their property value without emptying their pockets completely – the best of both worlds!