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.
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.
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.