Homeowners Moving Forward on Renovations Despite Debt

David Deem
714-997-3486

More than two-thirds of U.S. homeowners who already carry significant debt are planning home renovations, with most intending to finance the projects with credit cards or personal loans.

The findings are from a new Freedom Debt Relief survey detailing American homeowners' plans for home renovations. The poll surveyed 1,028 U.S. homeowners with at least $10,000 in unsecured debt.

According to the survey, more than two-thirds (69 percent) of homeowners plan on renovating their home in the next five years—even though 60 percent say they are unable to afford needed upgrades to their house. Overall, 73 percent of homeowners planning home renovations intend to fully finance their home renovation project with a debt-based financial product:

  • 38 percent plan on using a credit card to finance all or part of their home renovation.
  • 32 percent plan on using a personal loan.
  • 26 percent plan on using a home equity line of credit (HELOC).
  • 40 percent plan on using a home equity loan (HEL).


Twenty-six percent of homeowners plan on spending more than $25,000 on renovations in the next five years. Another 25 percent plan on spending between $5,001 and $10,000.

  • 56 percent said they will do flooring renovations.
  • 53 percent plan on bathroom renovations.
  • 51 percent plan on doing kitchen renovations.


Landscaping, new windows, fencing and roofing came in as the next most-popular planned renovations.
Renovations vary among generations, as well:

  • 91 percent of Gen Z homeowners plan on renovating their home in the next five years, compared to 78 percent of millennial homeowners, 69 percent of Gen X homeowners and 53 percent of baby boomer homeowners.
  • Kitchen renovations lead the list for Gen Z, with 70 percent planning on the project. Just over half (52 percent) of millennial homeowners plan to tackle a kitchen renovation, while 53 percent of Gen X and 44 percent of baby boomers do.


  • 40 percent of Gen Z homeowners plan on using a credit card to finance their renovation projects, versus 36 percent of millennials, 21 percent of Gen X homeowners and 23 percent of baby boomer homeowners. Personal loans are favored by the Silent Generation (33 percent) and millennials (31 percent), compared to just 10 percent of Gen Z, 13 percent of baby boomer and 20 percent of Gen X homeowners.


Before moving ahead on your renovation project, consider whether the debt you incur will be worth it in terms of return on investment. A local real estate expert can help guide you as to how your renovation may improve the value of your home.

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