69% of Americans Are Planning Home Renovations

Americans Planning Home Renovations
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Are you thinking that 2019 might finally be the year to tackle that home renovation project that you have been putting off?   According to a recent Freedom Debt Relief survey, more than two-thirds (69%) of the homeowners with $10,000 in unsecured debt plan on renovating their home in the next five years.

However, 60% of homeowners say they are unable to afford needed upgrades to their house, and they are willing to go deeper into debt to fund their renovation projects.

Overall, 73% of homeowners who are planning renovations intend to fully finance their home renovation project with a debt based financial product. 27% plan on paying all cash.

Of those homeowners that plan on fully financing their home renovation project 40% plan on using a home equity loan, 38% plan on using a credit card, 32% plan on using a personal loan and 26% plan on using a HELOC.

Renovation Projects

Of those that plan on renovating, 56% said they’ll be doing flooring. 53% said they’ll be doing bathroom renovations and 51% said they’ll be doing kitchen renovations. For Millennials, renovating the kitchen, bathroom and flooring are the most important projects.

Budgets

Of those that plan on renovating, 1 in 4 (26%) plan on spending over $25,000 on renovations in the next five years. Another 25% plan on spending between $5,001 and $10,000. For Millennials, 32% plan on spending over $25,000, while Gen Xer’s plan on spending between $5,001 and $10,000.

Payment Options for Home Improvement

Of those that plan on renovating, 58% plan on using cash or savings to finance renovation projects. 29% plan on using a Home Equity Loan and 28% plan on using a credit card. 36% of Millennials plan on using a credit card or a personal loan (31%) to fund their home renovation projects.


Freedom Debt Relief commissioned Atomik Research to run an online survey of 1,028 homeowners with at least $10,000 in unsecured debt in the United States. The margin of error is +/- 3 percentage points with a confidence interval of 95 percent. The fieldwork took place between July 3 and 14, 2019. Atomik Research is an independent creative market research agency.

Michael Micheletti serves as the Director of Corporate Communications at Freedom Financial Network where he is responsible for the strategic communications planning, knowledge dissemination and outreach to key consumer audiences. Before joining Freedom he held a variety of high profile communication and consumer education roles focusing on healthcare, tax and housing. He is a former reporter for FOX News, CNN and served as news director for Clear Channel Radio San Francisco.