Homeowners quickly began making repairs and swapping outdated fixtures as they started to shelter in place at the beginning of the COVID-19 pandemic. Home improvement stores like Lowe’s and Home Depot reported a surge in earnings as the pandemic began.
And the trend is sticking around. Homeowners are requesting personal loans for home improvement above rates prior to the pandemic, a new study from LendingTree shows. Requests for home improvement personal loans rose by 7.8% in the first week of June compared to a year prior. About one-third of those applicants said the pandemic influenced their decision.
Home remodels appear to be split between emergency home repairs or appliance replacements (which prompted 25% of owners to update) and remodeling or upgrading homes (27%), according to the LendingTree survey, based on responses from about 1,200 consumers.
Kitchen improvements and bathroom upgrades were the two most popular projects among consumers who took out a loan to fund a home improvement update, the survey shows. About 41% hired outside help for the repair or house project, while 27% said they did the project themselves. Thirty-two percent of respondents said they enjoy their home more since the improvement, and 28% of respondents hope the project will add value to their home when they’re ready to sell, the survey shows.
Among owners who used a personal loan for home repairs, the most commonly repairs were the porch, deck, walls, windows, or flooring. Further, nearly one-third of approved applicants reported needing the funds to repair the roof.
Source: “Home Improvement Spending Rises Amid Coronavirus Pandemic,” LendingTree (June 17, 2020)
