It's back to splurging on US$1,000 faucets

[BOSTON] A year ago, New Jersey contractor Michael Mroz's customers were focused on saving money when renovating kitchens and baths, he said. Now, with a resurgence of home equity lending, they're ready to pay for the best.

"People don't want granite countertops - they want marble costing at least 25 per cent more," said Mr Mroz, owner of Michael Robert Construction in Westfield, an affluent town less than an hour's commute to Manhattan. "Money is so cheap today, people can splurge on US$1,000 faucets."

Spending on home renovation is rising to record levels as banks such as Wells Fargo and JPMorgan Chase increase lending for home equity lines of credit, or Helocs, after US property prices this year gained at a pace not seen since the last housing boom.