ATLANTA, March 2, 2016 /PRNewswire/ -- As the remodeling market continues to improve, more homeowners are taking on home renovation and maintenance projects and are open to spending even more money than last year. According to its third annual survey, LightStream, the national online lending division of SunTrust Banks, Inc. (NYSE: STI), found 62 percent of homeowners plan to spend on home improvement projects in 2016, an increase of almost nine percent compared to 2015.* The survey of homeowners was conducted online by Harris Poll in February 2016.
The amount that homeowners are looking to spend has also increased from years past. Overall, homeowners planning renovations this year will spend an average of $6,239 as compared to $5,037 in 2015. Forty percent plan to spend $5,000 or more (up from 36 percent in 2015) and 22 percent plan on spending $10,000 or more (up from 18 percent last year).
Once again, the desire to update a home's look, features and technology is the main motivation to remodel. The trend in outdoor living continues to dominate as the number one home improvement project with 45 percent investing in decks, patios or landscape renovations. Bathroom remodels (31 percent); upgrades to roofs, windows, HVAC and other technology systems (30 percent); and kitchen remodels (23 percent) round out the top four projects.
Sixty-two percent of homeowners planning renovations will pull from their savings. Credit cards will be used by 25 percent of homeowners; home equity lines of credit (9 percent), loans (6 percent) and investments (6 percent), are also cited in homeowner payment strategies.
According to research analysts at the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, the challenge for 2016 will be whether the industry can find solutions to ongoing hurdles, such as consumer financing concerns. †
"Home remodeling costs are often paid for with savings," said Todd Nelson, LightStream business development officer. "But as homeowners explore remodeling options, the scope of their renovation often grows. It's always important for people not to overextend themselves on any project. However, financing can be a great solution to supplement a budget, without incurring more expensive credit card debt or having to tap into investments. A home improvement loan or home equity line of credit can be a smart option, as today's continued low interest rates can underpin additional expenses and allow people to take advantage of the cost, time and labor efficiencies of doing their projects all at once."
As of March 1, LightStream has lowered its home improvement loans to start as low as 3.99 percent APR with AutoPay. This fixed-rate, unsecured home improvement loan allows people with good credit to borrow between $5,000 and $100,000, with no fees and no paperwork.
For more information, visit https://www.lightstream.com/2016HomeReno.
About LightStream, a division of SunTrust Bank
LightStream is a national online lending division of SunTrust Bank, providing loans for practically any purpose. LightStream's proprietary technology provides consumers a virtually paperless loan application, underwriting, funding and servicing experience. Offering unsecured loans to consumers with good credit at low fixed rates and with no fees, LightStream can fund borrowers as soon as the same day they apply. (Click here for important disclosures, including information on same day funding as well as LightStream's Rate Beat Program and $100 Loan Experience Guarantee.)
About SunTrust Banks, Inc.
SunTrust Banks, Inc. is a purpose-driven company dedicated to Lighting the Way to Financial Well-Being for the people, businesses and communities it serves. Headquartered in Atlanta, the company has three business segments: Wholesale Banking, Consumer Banking and Private Wealth Management, and Mortgage. Its flagship subsidiary, SunTrust Bank, operates an extensive branch and ATM network throughout the high- growth Southeast and Mid-Atlantic states, along with 24-hour digital access. Certain business lines serve consumer, commercial, corporate and institutional clients nationally. As of December 31, 2015, SunTrust had total assets of $191 billion and total deposits of $150 billion. The company provides deposit, credit, trust, investment, mortgage, asset management, securities brokerage, and capital market services. SunTrust leads onUp, a national movement inspiring Americans to build financial confidence. Join the movement at onUp.com.
About the 2016 Home Improvement Survey
This survey was conducted online within the United States by Harris Poll on behalf of LightStream from February 1-3, 2016 among 1,258 homeowners ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
* Calculation: (62% - 57%) / 57% / 100
†Joint Center for Housing Studies of Harvard University
© 2016 SunTrust Banks, Inc. All rights reserved.
SunTrust Bank is an Equal Housing Lender.
LightStream is a federally registered service mark of SunTrust Banks, Inc. SunTrust is a federally registered service mark of SunTrust Banks, Inc. All other trademarks are the property of their respective owners. Lending services provided by SunTrust Bank, member FDIC.
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SOURCE LightStream, a division of SunTrust Bank