2 in 3 Homeowners Have Gone Into Debt for Renovations

About 53% of homeowners who hired a contractor went over budget, and 46% faced significant delays, compared to just 42% and 32% of DIY renovators, respectively.

ST. LOUIS, Oct. 8, 2024 /PRNewswire/ -- Nearly 2 in 3 homeowners (63%) have gone into debt to fund a renovation, according to new research from Clever Real Estate, a St. Louis-based real estate company.

With 94% of homeowners having completed a major renovation in the past five years, about 3 in 4 (78%) went over budget on their last project. Nearly half (44%) exceeded their budget by at least $5,000, while 35% exceeded it by at least $10,000.

With three months remaining in 2024, 45% of homeowners have already spent $5,000 or more on renovations this year, while 36% have spent $10,000 or more. The most common updates are bathroom remodels (37%), interior painting (33%), and HVAC upgrades (30%).

More than half of homeowners (53%) plan to spend $5,000 or more on renovations in 2025, while 40% plan to spend a whopping $10,000 or more.

About 1 in 3 homeowners (33%) borrowed $10,000 or more for their most recent home remodel, and 36% struggled to pay their credit card bill afterward.

About 3 in 4 homeowners who remodeled in the past five years (74%) have regrets — including 24% for overspending and 22% for the renovation taking too long. Even more, 47% preferred their home before the remodel.

Gen Z (89%) and millennials (82%) are far more likely to regret renovations compared to boomers (51%), despite being almost three times and twice as likely, respectively, to focus on renovations that increase resale value.

More than half of homeowners (52%) would rather DIY projects to save on costs. Of those who hired contractors, 53% went over budget and 46% experienced significant delays — compared to just 42% and 32% of DIYers. However, those who hired a professional (76%) were slightly more satisfied with the results than DIYers (71%).

An overwhelming 87% of homeowners faced challenges during their most recent renovation. 58% of renovations took longer than anticipated, with nearly one-third (32%) stopping due to unexpected costs and 29% firing contractors mid-project.

Still, 93% of homeowners plan to pursue a major renovation in the future.

Read the full report at: https://listwithclever.com/research/home-renovation-trends/

About Clever Real Estate

Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 3,000+ customer reviews. Since launching in 2017, Clever has reached $11.4 billion in real estate sold, matched 138,000+ customers with realtors, and saved consumers over $170 million on commission fees. Clever's network spans 15,000 agents across all 50 states.

Please contact Nicole Lehman at [email protected] with any questions or to arrange an interview.

CONTACT:                                                                                                                                         

Nicole Lehman
Clever Real Estate
[email protected] 
724-719-0406

SOURCE Clever Real Estate