Older Homeowners Are the Biggest Spenders on Home Improvements

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A recent report based on a Harvard study suggests that older homeowners are the biggest spenders in the United States when it comes to home improvements. Many homeowners invest money to improve their property. Some do it to improve their quality of life in the home while others make improvements to add to the value of their property.

The recent study claims that older homeowners are driving the marketing when it comes to home improvements, with spending among this age group continuing to increase. The data comes with the Harvard Joint Center for Housing Studies report, which shows that the aggregate total for spending on home improvements stands at $424 billion. This reflects an increase of 10 percent compared to four years ago and 50 percent compared to 2010.

Many Older People are Deciding to Renovate 

A big driver behind this stark increase in home improvement spending is said to be the older generation, many of which have been spending money on renovating their homes. A lot of older people want to make their homes more comfortable as well as practical, so they have been investing money in improving both the property itself and the garden areas where many are now able to spend more time due to retirement. They are spending cash on items for their outdoor areas such as City Seamless Patio Covers.

According to officials, there are a number of reasons why older people are the driving force behind this sort of spending. The first is that there are more older homeowners than younger ones, particularly in this day and age where many younger people are struggling to get their foot onto the first rung of the property ladder. Second is that older people have more resources and savings put aside to spend on home improvements and those who do not have savings often have large levels of equity in the home, against which they can borrow because their mortgage is paid off.

The report went on to state that in the last two years alone, spending by older homeowners increased by 150 percent to $117 billion. This was the result of the number of older homeowners increasing and an increase in the amount that they are spending on making improvements to their homes. So, in a nutshell, 50 percent of the national spend on home improvements by homeowners aged 55 and over.

A Range of Financing Solutions Being Used 

Data shows that in the majority of cases, older homeowners are tapping into their savings in order to fund their home improvements. The next most common methods include using home equity loans, cash-out finance, and lines of credit. Officials involved in the research also went on to state that they do not expect the level of spending from older homeowners to fall in the foreseeable future, and that it is likely to keep increasing.

Experts have also said that if more options are made available to homeowners with regards to financing, this could further boost the level of spending on home improvements. This is because those who are using their savings to fund their projects are limited in terms of how much they can spend.