Many homeowners are ready to remodel according to Bankrate's Mike Cetera and the latest Bankrate Money Pulse survey. Twenty-eight percent of respondents say they have plans to remodel or expand their homes within the next year, with millennials being the most likely to make home improvements at 37%. Annual home improvement spending is expected to set a record in 2016 and discretionary remodeling increased spending by 5.3% in the 4th quarter of 2015, according to the Leading Indicator of Remodeling Activity.
The survey found that exterior work is the most popular type of home improvement and 52% of homeowners plan to work on their driveways, decks, patios, pools, landscaping or fencing in the next year. Other popular projects include installing new flooring, renovating a kitchen, or getting new windows, roofing, or siding.
That's not to say the most popular projects are necessarily the best projects for homeowners to tackle, especially if return on investment is an important factor in choosing what to improve. A December 2015 report by the National Association of the Remodeling Industry and the National Association of Realtors found a number of projects that earn a return of 60% or less when an owner sells the home. Some of the more popular projects in the Bankrate survey are the least likely to provide a solid return, including renovating a bathroom, adding a master suite and installing wood-framed windows.
For more information on specific remodeling projects and their payoff, visit Remodeling Magazine's Cost vs. Value breakdown.