The home improvement industry is about to see explosive growth, due to the economy and the housing market in the
U.S., according to a recent financial report from CNBC based on TransUnion data.
The report says 10 million homeowners will take out home improvement loans in the next four years. What’s behind this upcoming boom?
Availability of Funding
After the recession ended, the home improvement business didn’t rebound immediately. Homeowners were cautious with their dollars, and many lenders had given up and gotten out of the business.
Time has passed, however, and more lenders are ready to risk handing cash to homeowners. Competition may be stiff among separate institutions offering different types of loans at varying interest rates.
Fewer Housing Options
Many homeowners are dissatisfied with their property, but they have nowhere to go. It’s a seller’s market in many cities across the U.S., making the option to leave your home in favor of a better one unobtainable. For families who are expanding and need more room, or for homeowners facing major repairs, cutting and running is not possible.
The only alternative is to stay in the homes they have and try to make them work, and this is usually achieved through home renovations.
A Way to Pay
However, fewer houses are available, then they’re worth more, and those who own property may suddenly have more home equity to dip into. A homeowner who bought their house five years ago for $500,000 might suddenly find they have $100,000 in equity due to appreciation, depending on where they live.
Homeowners can dip into this found money to make repairs or embark on a home renovation project.
There’s lots to consider before making this decision, however. Job security, personal health and debt management are all factors in the decision — and the ability — to borrow money. And don’t forget about planned expenses, like college tuition for your high-schooler or a wedding for your son or daughter. Even if it’s a few years down the road, it counts.
Falk Construction Can Help
But you can’t really budget an expense until you know how much it is. Meet with us at Falk Construction to get an estimate on the home renovation idea you have in mind. Projects can run from just a few thousand to tens of thousands of dollars, depending on the scope of the plan. If you find out that the home renovations you sorely need will cost more than you think you can afford, we can show you how to scale down and make choices that work with your budget — without sacrificing quality.
Contact Falk Construction today. We’re the team to turn to when you need bathroom, kitchen or basement remodeling
or general contracting services.