The 2021 Homebuyer Insights Report: Home Improvement and Equity Spotlight from Bank of America found that across all generations, homeowners are customizing their homes to optimize enjoyment. Twice as many respondents cite greater enjoyment in their living space (67%), rather than an effort to increase their home’s value (33%), as their motivation to renovate.
A greater reliance on the home as a workplace, family and entertainment center has led many homeowners to tackle home projects themselves. Nearly three-quarters (71%) of younger homeowners – those ages 18 to 43 – have completed DIY work around their homes recently, compared to 42% of older homeowners – ages 57 to 75.
Tapping record home equity enables homeowners to achieve their home improvement goals
With home sales highly competitive and many who already own homes renovating them, prospective buyers are looking to purchase fixer uppers to begin building equity. In fact, more than two-in-five younger homebuyers (44%) say they would rather buy a fixer-upper and improve it over time than buy a home that’s move-in ready.
Rising home prices are helping homeowners build home equity, and that can help them achieve goals like customizing the look and feel of their homes. While financing options like home equity lines of credit might seem intimidating for some, a conversation with a lending specialist can provide solutions to make the equity in your home work for you.
Helping with the upfront costs of homeownership
To many prospective buyers, the upfront costs of buying a home can make one seem out of reach. Through its Community Homeownership Commitment, Bank of America offers low down payment mortgages and grants to help cover upfront expenses like down payments and closing costs.
And, to help de-mystify homeownership, Bank of America’s First-Time Homebuyer Online Edu-SeriesTM provides an easy-to-understand roadmap to buying and financing a home. Bank of America also offers tips for home financing and other financial strategies through Better Money Habits, a free financial education platform that connects people to the information and tools they need to help take control of their finances.