Challenging Housing Market Results in Nearly 80% of Homeowners Preferring to Renovate Than Move
March 30 2022 - 6:02AM
Business Wire
42% of homeowners say rising interest rates are
delaying their home improvements; nearly half that are planning
projects have encountered material delays
In light of a difficult housing market filled with high home
prices and low supply, Discover Home Loans issued a survey to
better understand homeowners’ attitudes towards home improvements,
purchasing and refinancing. According to its survey, Discover found
79% of homeowners would rather renovate their current home than
move to a different one.
In fact, 58% of Gen Z and millennial homeowners are currently
working on home improvements or plan to do so within the next three
months, and the majority, 82%, say they plan to improve their home
as a form of investment.
“With tappable home equity on the rise, now is the time for
homeowners to finance their home improvements with a home equity
loan and ultimately, stay in the homes they love long-term,” said
Rob Cook, vice president of marketing, digital & analytics of
Discover Home Loans. “In some markets, there’s a challenge of low
housing inventory and high demand, which is increasing home prices
and giving another reason for homeowners to stay with and invest in
their current home.”
According to the survey, homeowners are most wanting to conduct
routine maintenance, update appliances or refinish their flooring.
Notably, the number of Americans planning to update their floors
jumped 11 percentage points since August 2020; meanwhile, those
planning to replace external elements (roofing, doors and gutters)
increased seven percentage points.
Top 5 Improvements Americans are
Wanting to Undertake:
Top 5 Reasons Americans Would Rather
Renovate:
Routine maintenance
42%
They can better personalize their home
27%
Updating appliances
31%
They view it as less expensive than buying
a new home
26%
Refinishing or replacing their
flooring
31%
They feel a sense of accomplishment
21%
Remodeling an existing bathroom
29%
Finding a home is too stressful
9%
Remodeling an existing kitchen
28%
The current housing market is too
limited
7%
Current Economic Conditions Creating Snags for Some
While appetite for home improvement projects remains high, those
planning immediate projects are running into problems with price
increases and material sourcing. About half of those planning a
home improvement now or in the next three months, 48%, say they’ve
experienced delays in getting materials for their projects, and 41%
think they will encounter delays.
More than 57% of homeowners undertaking projects have gone over
budget, and nearly two in three report their project cost has
increased since their initial contractor bid. Rising interest rates
have had a significant impact as well, resulting in 42% of
homeowners delaying their home improvement project.
“As the U.S. continues to deal with rising material costs and
supply chain issues, it’s more important than ever for homeowners
to plan ahead for their remodel”, said Cook. “The best first step
is to get your financing in order. Starting with a loan calculator,
like the one provided by Discover Home Loans, can help give
homeowners a sense of how much they can borrow, and what monthly
payments may look like.”
About the Survey
The national survey of 1,531 homeowners was commissioned by
Discover and conducted by Dynata (formerly Research Now/SSI), an
independent survey research firm. The surveys were conducted
online; the first was fielded from January 20 to January 26. The
maximum margin of sampling error was +/-3 percentage points with a
95% level of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a digital banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
loans, checking and savings accounts and certificates of deposit
through its banking business. It operates the Discover Global
Network, comprised of Discover Network, with millions of merchant
and cash access locations; PULSE, one of the nation's leading
ATM/debit networks; and Diners Club International, a global
payments network with acceptance around the world. For more
information, visit www.discover.com/company.
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version on businesswire.com: https://www.businesswire.com/news/home/20220330005265/en/
Robert Weiss Discover 224-405-6304 robertweiss@discover.com
@Discover_News
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