Kitchen & Bath Design News

MAY 2018

Kitchen & Bath Design News is the industry's leading business, design and product resource for the kitchen and bath trade.

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ATLANTA — Residential remodeling interest is on the rise along with home-renovation budgets – positive news for a kitchen and bath market already gaining ground on the strength of job growth, rising incomes and other factors. That's the key conclusion of the fifth annual LightStream Home Improvement Survey, which found that more than half (58%) of surveyed homeowners are planning to spend money on home improvement projects in 2018. The survey also found that, among the homeowners planning renova- tions, 45% will spend $5,000 or more – an all-time survey high – and those planning to spend $35,000 or more doubled from 2017. Budgets have been trending upwards steadily for the past four years (see related graph below). LightStream, the online lending division of Atlanta-based SunTrust Banks, conducted its survey in January among more than 2,000 homeowners, many of whom said they plan to invest in home improvements this year. "The survey reveals robust enthusiasm for renova- tion, as well as a thoughtful desire to balance a home's needs and the homeowners' budget, so they have the financial confidence to move forward," said Todd Nelson, LightStream senior v.p. Specifically, the survey identified the following trends: • Aging in Place: Only seven percent of surveyed home- owners reported that they are renovating to prepare their homes to be sold, the lowest percentage since 2015. In contrast, 14% of homeowners across all age groups cited "aging in place" as a reason for making a home improvement. Even respondents aged 18 to 34 (11%) and 35 to 44 (10%) reported they're renovating "to prepare my home so I can stay in it as I get older." • Impact of Tax Reform: With the recent passage of tax reform, homeowners have already begun calculating how the changes might affect what they spend on home improvements. One in four surveyed homeowners who have set a budget for renovation projects stated that tax reform has had an impact, with 18% reporting they are increasing their budget compared to 7% decreasing it. • Diversity of Projects: Nearly a third (31%) of sur- veyed homeowners said they will tackle a bathroom remodel in 2018, while more than one in four (26%) are expected to remodel their kitchen. The popularity of outdoor improvements also remains strong, with projects such as decks, patios and landscaping rank- ing at the top of the list (43%), up 5% over 2017. • Paying for the Work: The majority of homeowners (62%) plan to pay for home remodeling projects, at least in part, by using savings. Intent to fund through home equity lines of credit jumped from 10% to 13%. At the same time, the percentage of people intending to use a home improvement loan has grown 29% from 2017, up to 54% this year. Other financing options are being considered, as well. While overall, 30% of homeowners say they'll pay for some portion of their 2018 project with a credit card, 16% fewer homeowners aged 18 to 34 plan to use credit cards compared to last year. ▪ HOME RENOVATION BUDGETS TREND UPWARDS Source: Fifth annual LightStream Home Improvement Survey Nearly a third of home- owners polled are planning a bathroom remodel in 2018, such as this one, designed by Sandy Aromando, CKD of Euro Line Designe, in collabora- tion with Logic Builder and Beach Dwellings. Photo: Matthew Aromando, Mondo Studios Remodeling Budgets Seen Rising in 2018 Percent of Homeowners Planning to Spend $5,000 or More 2015 2016 2017 2018 36% 40% 42% 45% 14 Kitchen & Bath Design News • May 2018 CONSUMER BUYING TRENDS DEMOGRAPHICS & BUYING PATTERNS FOR THE HOME PUBLISHING SOLA GROUP, INC. 1880 OAK AVE., SUITE 350 EVANSTON, IL 60201 (847) 440-3000 Paul DeGrandis Publisher, ext. 100 Paul@SOLAbrands.com Eliot Sefrin Publisher Emeritus, ext. 113 Eliot@SOLAbrands.com SALES WEST/MIDWEST Paul DeGrandis Ext. 100 Direct (847) 920-9510 Paul@SOLAbrands.com EAST/SOUTHEAST Joanne Naylor Ext. 114 Direct (201) 891-9170 Joanne@SOLAbrands.com MIDWEST Jessica Fidrocki Ext. 117 Direct (847) 386-2177 Jessica@SOLAbrands.com PRODUCT & LITERATURE SHOWCASE/CLASSIFIED ADS Mike Serino Ext. 102 Direct (630) 699-2004 Mike@SOLAbrands.com EDITORIAL Janice Anne Costa Editor, ext. 116 Janice@SOLAbrands.com Anita Shaw Managing Editor, ext. 112 Anita@SOLAbrands.com SUBSCRIPTIONS Kitchen & Bath Design News Circulation Dept. P.O. Box 3007 Northbrook, IL 60065-3007 (866) 932-5904 circ.kbdn@omeda.com KitchenBathDesign.com ®

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