2 in 3 Homeowners Have Gone Into Debt for Renovations

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Oct 08, 2024, 08:54 ET

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.

Which of the following major home renovations have you done in the past five years?

How much did you spend or do you plan to spend on home renovations in the following years?

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