CHERRY HILL, N.J.–As homeowners continue to rack up record amounts of home equity thanks to rising home values, to no one’s surprise many are tapping into it.
But how are they spending the cash?
According to a new survey, renovation spending is soaring, with 80% of borrowers who have taken out home equity lines of credit saying they have or are considering using the money to renovate their homes.
The survey was conducted during December and sponsored by TD Bank.
According to the National Association of Home Builders, spending on remodeling during 2017 will top $152 billion, and renovations of owner-occupied single-family homes will increase 4.9% in 2018 over 2017. That does not include remodeling done by investors looking to flip or rent properties, both of which are increasing as well, according to the NAHB.
"Below-normal rates of home building are creating an aging housing stock," said Paul Emrath, vice president of survey and housing policy research at the NAHB, in a statement. "Factors inhibiting stronger growth include the ongoing labor shortage and rising material prices."