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Home Renovation Costs This Year

Home Renovation Costs This Year

This spring and summer, along with the sounds of birds chirping and kids playing outside, you might be hearing the buzz of power tools and clanging of hammers in your neighborhood. 

Americans have always put effort into their homes. In fact, people in the U.S. spend more than $400 billion a year on home renovation costs and repairs, according to researchers at Harvard University. But this year, home projects are getting even more attention. 

With home prices rising fast, lots of people are working on the homes they own. After all, it’s likely to be their most valuable asset. And after two+ years of a pandemic, many of us have spent more time at home and noticed things we’d really love to improve.

POPULAR PROJECTS

If you’re thinking of renovating your kitchen, you’re not alone: Houzz says kitchen upgrades are among the most common projects many families are tackling. Outdoor projects like repairing or adding a deck are also popular, and many people are adding “smart home” technology like security cameras or new lighting systems. 

So whether you’re making repairs, redecorating or full-on renovating, this may be the year you find yourself filling a cart at The Home Depot or calling a contractor. 

People are also getting smarter about home renovation costs payments. 

When Houzz surveyed more than 75,000 people in 2021, they found that fewer people are choosing to pay for home improvements with credit cards. Back in 2019, 37% of people used a credit card. As people planned 2021 renovations, that number had dropped to 29% of homeowners. 

SMART SPENDING

Avoiding credit cards can be a wise move: When a homeowner charges renovations and repairs on a credit card, they may find themselves in a position of snowballing debt. Over time, a $1,000 renovation can cost that person a whole lot more, as they labor to make minimum payments and find themselves getting hit with big interest charges. 

Many more people – a whopping 83% – told Houzz they plan to pay for home repairs and renovations with cash. 

One way to make that happen is to take out a personal loan. Personal loans give you the cash you need to invest in valuable upgrades and necessary repairs for your home. But instead of hitting you with unpredictable monthly bills, a personal loan at a fixed rate gives you a clear monthly payment with no surprises.

You’ll always know how much you’re paying each month with a clear payoff date – and there’s no compounding interest to snowball. 

READY TO DISCUSS HOME RENOVATION COSTS?

The Friendly Franklin Folks at your local branch are always ready to sit down with you and talk about the ideas you have for working on your home and financing that works with a fixed rate personal loan. 

To make things even easier, you can begin your personal loan application online. Then you can drop in at your convenience to see your local 1st Franklin Financial associate and discuss all the details to finish your application and get the funds you need.

Whether you’re repairing, renovating or totally reimagining your home this year, 1st Franklin is ready to help make your domestic dreams come true!

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