Home / Daily Dose / Homeowners Looking to Renovate Than Relocate
Print This Post Print This Post

Homeowners Looking to Renovate Than Relocate

remodelingIn light of a difficult housing market filled with high home prices and low supply, Discover Home Loans issued a survey to better understand homeowners’ attitudes towards home improvements, purchasing and refinancing. According to its survey, Discover found 79% of homeowners would rather renovate their current home than move to a different one.

“In some markets, there’s a challenge of low housing inventory and high demand, which is increasing home prices and giving another reason for homeowners to stay with and invest in their current home.”

In fact, 58% of Gen Z and millennial homeowners are currently working on home improvements or plan to do so within the next three months, and the majority, 82%, say they plan to improve their home as a form of investment.

“With tappable home equity on the rise, now is the time for homeowners to finance their home improvements with a home equity loan and ultimately, stay in the homes they love long-term,” said Rob Cook, vice president of marketing, digital & analytics of Discover Home Loans. “In some markets, there’s a challenge of low housing inventory and high demand, which is increasing home prices and giving another reason for homeowners to stay with and invest in their current home.”

According to the survey, homeowners are most wanting to conduct routine maintenance, update appliances or refinish their flooring. Notably, the number of Americans planning to update their floors jumped 11 percentage points since August 2020; meanwhile, those planning to replace external elements (roofing, doors and gutters) increased seven percentage points.

While appetite for home improvement projects remains high, those planning immediate projects are running into problems with price increases and material sourcing. About half of those planning a home improvement now or in the next three months, 48%, say they’ve experienced delays in getting materials for their projects, and 41% think they will encounter delays.

More than 57% of homeowners undertaking projects have gone over budget, and nearly two in three report their project cost has increased since their initial contractor bid. Rising interest rates have had a significant impact as well, resulting in 42% of homeowners delaying their home improvement project.

“As the U.S. continues to deal with rising material costs and supply chain issues, it’s more important than ever for homeowners to plan ahead for their remodel”, said Cook. “The best first step is to get your financing in order. Starting with a loan calculator, like the one provided by Discover Home Loans, can help give homeowners a sense of how much they can borrow, and what monthly payments may look like.”

To view the full report, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years' writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News, the Orange County Register, in addition to 11 other Southern California publications. A former 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 and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is a jazz aesthete and loves to read. She can be reached at [email protected]
x

Check Also

Which Home Renovations Pay off the Most?

More and more Americans are choosing to renovate their homes in light of today’s mortgage rates, but what are the smartest projects to maximize ROI?