Rise in personal income may yield additional home improvement spending
Posted on Tuesday, December 4, 2012 at 5:17:39 PM
Following the recent recession, in order to keep their funds in check, many homeowners put off needed home repairs and updates until their personal financial situations improved. However, as income levels continue to gain momentum, this could result in additional home improvement activity.
During the month of October, nationwide personal income levels increased $400 million, while disposable personal income rose $800 million, according to a report from the Department of Commerce.
Home improvement trends are very different today than they were at the housing market's peak. In 2006, features, such as walk-in closets, swimming pools and outdoor fireplaces were in high demand. However, with property values down more than 30 percent in some areas, homeowners are looking for more economical options.
According to HouseLogic, many households are interested in convertible spaces, such as home offices that can convert into an additional bedroom. This allows homeowners to take advantage of more space in smaller homes that can be more affordable.
If a household doesn't have the available funds for a particular project, home improvement loans may come in handy to free up some extra cash.