71% plan renovations

Citizens said April 23 that 71% of homeowners plan a home improvement project within the next two years instead of moving. (citizensbank.com) The bank’s survey found 44% of homeowners now see renovating their current home as the most realistic housing option over the next few years. Just 13% said buying a home feels achievable in the current market. (citizensbank.com) Citizens said 36% of respondents pointed to the cost of buying a home as a reason to renovate instead, and 19% said they do not want to give up their current mortgage rate. Two-thirds, or 66%, said they would sacrifice other major purchases to fund improvements. (citizensbank.com) The financing piece is getting bigger. Citizens found 63% of homeowners expect to need financing for a home purchase or improvement within five years, while 39% said they do not understand how financing options work. (citizensbank.com) That confusion shows up in the details. Citizens said 27% called hidden fees the most confusing part of the process, 32% would use home equity only in an emergency, and 27% said they are unfamiliar with home equity or have not explored it. (citizensbank.com) The survey fits a broader remodeling pattern. Redfin said last week that about two-thirds of homeowners who recently made renovations chose to upgrade their current home instead of moving to a different one. (redfin.com) Renovation spending has stayed high even with cost pressure. Houzz said the median U.S. renovation spend rose 60% from $15,000 in 2020 to $24,000 in 2023, and 37% of renovating homeowners used credit cards in 2023, up from 28% a year earlier. (houzz.com) Citizens framed the shift as a change in what homeowners think success looks like: staying financially secure where they are and making the current house work longer. For now, the data points to a housing market where many owners are staying put and paying to adapt. (citizensbank.com)