Home >> Daily Dose >> Refinances, Renovations Expected to Increase in 2022
Print This Post Print This Post

Refinances, Renovations Expected to Increase in 2022

About 40% of Americans are considering a move in 2022, as consumers are seeking more space to accommodate the realities of remote work as the global pandemic continues into another year. 

According to the newest LendingTree survey, the need for more space is the number one reason Americans plan to move, while others have certain features in mind. Of those planning to move, the most common must-haves for their next home include it being pet-friendly, having a large outdoor space, and coming with an open-plan kitchen. 

Nearly half of those planning to relocate hope to buy a home. Almost two-thirds of respondents say they’ll ultimately decide by themselves when and where they move. However, another 36% base those decisions on or with their spouse or partner. 

More than a third of Americans say the pandemic completely changed what they’re looking for in a home, as well as their desired location. These sentiments are most common among hybrid and remote workers. 

Among those most likely to move are: 

  • Gen Zers (62%) 
  • Millennials (53%) 
  • Remote workers (53%) 
  • Renters (52%) 
  • Parents with young children (50%) 

Some 72% of homeowners are considering renovations or upgrades to their home in 2022, and 37% might apply for home refinance.  

For those planning to move, finding a new place in the same city is the primary choice for both men and women. According to LendingTree Senior Economic Analyst Jacob Channel, consumers moving further will likely head to warmer weather states like Texas or Florida. Only 4 in 10 Americans are thinking about moving elsewhere in the U.S. in 2022. 

“Some might continue to postpone moving because they’re still not comfortable going out and seeing new homes,” Channel says. 

Consumers thinking about moving cited their small homes as the main reason they’re looking to go elsewhere, followed by paying too much for their current house. The features of a home can also impact whether Americans change their living situations or not.  

Must-haves also vary widely across age groups, with Gen Zers and Gen Xers ranking a happy home for pets as their top must-have. Millennials prioritize outdoor space, and baby boomers covet covered parking. Millennials also require a good school district more than other generations. Regarding interiors, a large kitchen ranks highest for millennials and baby boomers. 

Amid rising housing prices, nearly 4 in 10 Americans expect to sacrifice more cash to change their living situation. While nearly 70% of Americans are making sacrifices to afford housing costs, those looking to move may find more homes available in 2022. 

“Housing supply is expected to increase, putting downward pressure on home and rent growth while giving people a greater selection of housing to choose from,” Channel says. 

More than 7 in 10 homeowners across the U.S. have renovation plans in 2022. The choice of whether to sell or renovate often depends on how consumers like the area they live in. If one loves their home and neighborhood, but don’t want or need a complete overhaul, renovating might be a good bet especially if one qualifies for a home equity loan to cover renovation expenses, Channel says. 

Despite predictions for higher mortgage rates in 2022, homeowners may still benefit from refinancing. More than a quarter of hybrid workers and nearly as many as 25% remote workers plan to apply for a home refinance. Some 23% of parents with children younger than 18 are also expected to apply. 

“If you’ve seen the value of your home significantly increase and you’ve built a lot of equity as a result, then a cash-out refinance could be something to consider in 2022,” Channel says. 

 

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport, with more than six years of writing experience. She has served as Editor-in-Chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington. She has covered events such as the Byron Nelson, Pac-12 Conferences, the Women in Dallas Film Festival, to freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, she is an avid jazz lover and reader. She can be reached at [email protected]
x

Check Also

FHFA Announces Staffing Updates

The Federal Housing Finance Agency announced new Deputy Directors for the Division of Housing Mission and Goals and the Division of Bank Regulation.