While the housing market may be hotter than ever, most homeowners prefer to fix their homes rather than put them on the market, according to a new survey out this week from LendingTree.
According to the findings, 72% of homeowners would rather tackle home improvement projects than list their home.
LendingTree surveyed 1,000 homeowners about their home improvement wishes and plans, asking everything from which upgrades they’re making and their budgets to how they plan to finance their home improvement projects.
- In an ideal world, 72% of homeowners would rather make home improvements than sell their houses. 48% of homeowners have renovation or upgrade plans this spring or summer, while 34% say they’re considering it. Millennials (60%) and Midwesterners (55%) are most likely to have home improvement plans.
- Nearly two-thirds of homeowners say recent economic turmoil has impacted their home improvement plans. In total, 36% have put off projects due to rising supply and labor costs, while 16% did so due to supply chain issues.
- Americans really want to renovate their kitchens, but costs are prohibitive. If money weren’t an issue, homeowners would most want to renovate their kitchen (18%), but just 22% of those making home improvements are doing so. Overall, 62% of homeowners say there are some home improvements they want to make but can’t afford.
- Budgets are tight, too, leading more homeowners to take a DIY approach. Among those with home improvement plans this spring or summer, 50% hope to spend less than $10,000. And with labor costs on the rise, 77% say they’ll make at least some of the home improvements themselves.
- Most homeowners (60%) will use their savings to cover home improvement costs, but others will take on debt. Respondents’ financing sources include credit cards (25%), personal loans (12%), home equity loans (7%), buy now, pay later loans (6%), home equity lines of credit (5%) and cash-out refinances (3%).
But supply-chain issues are causing some homeowners to delay their projects. According to LendingTree Senior Economic Analyst Jacob Channel, the lingering impacts of COVID-19 and the Russian invasion of Ukraine are crucial factors disrupting global supply chains—and ultimately impacting homeowners.
“These disruptions have made it considerably more expensive to ship raw materials,” Channel says. “Combined with rising labor costs, these factors have caused the cost of goods to spike significantly. As a result, anyone thinking about taking on a home equity project should first research the local prices and availability of commonly used materials, like lumber, before they decide to start renovations.”
To view the full study, click here.