2 Surprising Trends That Show Homeowners Value Joy Over ROI
Written by
Cynthia Measom
Edited by
Levi Leidy
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Plenty of homeowners still care about resale value. But a growing number are spending money on upgrades that have nothing to do with profit and everything to do with how a home makes them feel.
According to a new survey from Thumbtack and DKC Analytics, 84% of homeowners said they’re choosing projects that bring happiness over return. That percentage includes 68% who plan to sell anyway.
Here’s a look at some surprising trends that show homeowners are putting joy before return on investment (ROI).
Also see eight challenges you could face renovating your home and how they could cost you.
Making Design Choices Based on Personal Preference
It’s no secret that real estate experts often recommend that homeowners keep future buyers in mind when making design choices. Homebuyers typically prefer more neutral decor over spaces that are overly personalized because it allows them to visualize their own preferences rather than focusing on the homeowner’s bold or unique choices. However, many homeowners are ignoring that advice.
Approximately three-fourths of respondents are making design choices according to their personal preferences with no regard for what a future buyer might desire. About one-third are making this decision because they plan to keep living in their home for an extended period of time, or they want to get maximum enjoyment out of their home. And 25% said they put joy over ROI because they’re at home a majority of the time.
A case can be made for homeowners who make highly personalized design choices in what they consider their “forever” home or a home they plan to live in for decades because they’re not focused on ROI as much. However, those who make design choices that resonate with them and move out within five years may have to take a loss on ROI.
Splurging On Home Upgrades Even If They Don’t Add Value
About one-third of homeowners said they plan to spend more than $10,000 this year on upgrades that make them happy, even if those projects don’t add as much to their home’s value in the way a kitchen remodel or working on curb appeal would. Millennials, in particular, are driving this trend, choosing upgrades like pools, hot tubs and home gyms, per the survey.
In-ground hot tubs and pools are popular but costly. According to data from Angi (formerly Angie’s List), the average pool can cost somewhere in the $45,000 to $87,000 range. However, the cost heavily depends on the kind of pool you want and also where you live. The website California Pools, for example, agrees that the average run-of-the-mill pool may run around $50K, but adds that it’s common to see prices more in the $75K-$100K range as well, with landscaping and other upgrades.
What some homeowners don’t know is that this feature may not be good for selling the home down the line. Many buyers don’t want the upkeep, and in some markets, a pool can even turn people away, per Zillow.
Walk-in closets are also in high demand, up 125% in project requests, per the survey, but Zillow found they can slightly hurt resale — especially if they replace a bedroom or square footage better utilized in other ways.
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