A worker applies drywall mud to a wall.
A worker applies drywall mud to a wall. A survey by the online lender Lightstream found that a majority of homeowners plan to spend money on home improvements this year, and 65 of those homeowners plan to do at least some of the work themselves. File photo.

More than half of homeowners are planning to spend money on home improvement projects in 2018, according to the fifth annual LightStream Home Improvement Survey. The national online lender said budgets for renovations are on the rise: among homeowners planning renovations, 45 percent will spend $5,000 or more — an all-time survey high. Those planning to spend $35,000 or more doubled from 2017.

The survey revealed the following trends:

Home “sweat” home

Most homeowners plan to invest sweat equity, as 65 percent say they’ll do at least some of the work themselves. The 18-to-34 group is particularly fond of do-it-yourself projects, with 70 percent planning to work on at least a portion of their renovation.

Love of the outdoors

The popularity of outdoor improvements remains strong. Projects such as decks, patios and landscaping rank at the top of the list for the fifth year in a row (43 percent), up five percent over 2017. Nearly a third (31 percent) of homeowners will tackle a bathroom remodel; more than one in four (26 percent) will redo a kitchen.

Staying — and aging — in place

Only 7 percent of homeowners are renovating to prepare their homes to be sold, the lowest percentage since 2015. Instead, 14 percent of homeowners across all age groups — not just baby boomers — are citing “aging in place” as a reason for making a home improvement. Even respondents aged 18 to 34 (11 percent) and 35 to 44 (10 percent) say they’re renovating “to prepare my home so I can stay in it as I get older.”

Much of the renovation in the Treasure Valley is prompted by the shortage of housing inventory, said Rick Lierz, the CEO of Franklin Building Supply. Homeowners who want a change can’t find a place to move often decide to make the change in their own home.

“A lot of this renovation is hyper in the Treasure Valley because housing inventory is very low and home prices are at record high levels,” Lierz said. “Thus more people are choosing to stay and improve their current living space.”

Tax Reform boosting budgets

With recent passage of tax reform, homeowners have already begun calculating how the changes might affect what they spend on home improvements. One in four homeowners who have set a budget for renovation projects stated that tax reform has had an impact, with 18 percent increasing their budget and seven percent decreasing it.

Paying for projects

Sixty-two percent of homeowners plan to pay for projects, at least in part, by using savings. And intent to fund through home equity lines of credit (HELOC) jumped from 10 to 13 percent.

“U.S. economic growth and limited housing inventory have contributed to healthy home equity gains,” said Ellen Koebler, SunTrust head of consumer solutions. “HELOCs can offer a financial solution for many homeowners, as accrued value may be available to tap for renovations.”

At the same time, the percentage of people intending to use a home improvement loan has grown 29 percent from 2017 with 54 percent more 18- to 34-year-olds planning to fund projects through home improvement financing.

Other financing options are being considered as well. While overall, 30 percent of homeowners say they’ll pay for some portion of their 2018 project with a credit card, 16 percent fewer homeowners aged 18 to 34 plan to use them compared to last year.