Tough housing market outcomes with nearly 80% of homeowners prefer to renovate than move
Tough housing market outcomes with nearly 80% of homeowners prefer to renovate than move

RIVERWOODS, Illinois–(BUSINESS WIRE)–In light of a difficult housing market characterized by high property prices and low supply, Find out about home loans released a survey to better understand homeowners’ attitudes toward home improvements, buying and refinancing. According to its survey, Discover found that 79% of homeowners would rather renovate their current home than move to another.

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

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

According to the survey, homeowners are the most eager to perform routine maintenance, update appliances or refurbish their flooring. Notably, the number of Americans planning to update their floors has jumped 11 percentage points since August 2020; meanwhile, those planning to replace exterior features (roofing, doors and gutters) rose by seven percentage points.

Top 5 Improvements Americans Are Looking For

to undertake:

Top 5 Reasons Americans Would Rather

Renovate:

Routine maintenance

42%

They can better personalize their

residence

27%

Device update

31%

They consider it cheaper than

buy a new house

26%

Renovation or replacement of their flooring

31%

They feel a sense of accomplishment

21%

Renovation of an existing bathroom

29%

Finding accommodation is too stressful

9%

Renovation of an existing kitchen

28%

The current housing market is too

limit

7%

Current economic conditions are creating problems for some

While the appetite for home improvement projects remains high, those planning immediate projects are running into issues with rising prices and sourcing materials. About half of those planning a home renovation now or in the next three months, 48%, say they have experienced delays in obtaining materials for their projects, and 41% believe they will experience delays.

More than 57% of owners taking on projects have gone over budget, and nearly two in three say the cost of their project has increased since their initial contractor offer. Rising interest rates also had a significant impact, causing 42% of homeowners to delay their home improvement project.

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

About the survey

The national survey of 1,531 homeowners was commissioned by Discover and conducted by Dynata (formerly Research Now/SSI), an independent survey research company. The surveys were conducted online; the first took place from January 20 to 26. The maximum margin of sampling error was +/- 3 percentage points with a confidence level of 95%.​

About Discover

Discover Financial Services (NYSE:DFS) is a digital banking and payments company with one of the most recognized brands in financial services in the United States. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America’s pioneer in cash rewards, and offers private student loans, personal loans, home loans, checking and savings accounts, and certificates of deposit through its banking business. It operates the Discover Global Network, consisting of Discover Network, with millions of merchants and cash access points; PULSE, one of the nation’s leading ATM/debit networks; and Diners Club International, a global payment network accepted worldwide. For more information, visit www.discover.com/company.

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