Renovation costs are increasing. Could a Personal Loan Help You Fund Your Home Improvement Project?

Are you a homeowner and have renovations in mind? Have you been living on a construction site for the past few months? You’re not alone.

According to recent data from Houzz, home improvement activity and spending have hit a three-year high. Almost half of the homeowners surveyed said they renovated their homes in 2021 (48%), up from 44% in 2020.

Dealing with the cost of a Reno

Did you know that a basic Reno could cost you more now than in years past? Luckily, there are a number of cheap personal loan options that could help you cover the costs.

Houzz announced that planned renovation spending increased year-over-year, reaching $25,000 compared to $20,000 in 2020.

And remember, planned budget doesn’t always reflect actual costs, as homeowners saw a significant 43% increase in average renovation spend from $21,000 in 2020 to $30,000. Recent homebuyers surpassed the national median spend, reaching $40,000 for Renos and outperforming short-term and long-term homeowners ($35,000 and $25,000, respectively).

Help from Reno companies

Unsurprisingly, the rise in Renos has led to a growing demand for home pros. Homeowners are hiring help for their home renovation projects, up year-on-year (94% vs. 91%). This undoubtedly drives up construction costs further as there is less handicraft work to be done.

As forecast by Corelogic back in April, this increase in demand coincides with an ongoing global supply chain crisis caused by the pandemic and then exacerbated by instability and inflation stemming from the geopolitical situation in Ukraine.

“For anyone looking to build or renovate, or someone who owns a business involved in the home construction industry, this means they are all likely to face significantly higher costs,” said Tim Lawless, CoreLogic’s research director.

No matter how big or small your project, renovations can require a little financial support, and this is where home renovation loans can take some of the pressure off.

Want to start comparing loans for your Reno? Check out some options offered below now, or head over to Australia’s Best Personal Loans this month for the Mozo Experts Choice Award winners and Editors’ Picks.

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WARNING: The Comparative Rate combines the lender’s interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparative rates shown are calculated based on a $30,000 5 year loan or a $10,000 3 year loan as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and a unsecured basis basis for unsecured loans. This comparative rate applies only to the example or examples given. Different amounts and maturities lead to different comparison rates. Costs such as redemption fees or prepayment penalties and cost savings such as fee waivers are not included in the benchmark rate but may affect borrowing costs.

^See information on the Mozo Experts Choice Personal Loan Awards

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About Meredith Campagna

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