ST. LOUIS — Nearly 2 in 3 homeowners (63%) have gone into debt to fund a renovation, according to new research from Clever Real Estate, a St. Louis-based real estate company.
With 94% of homeowners having completed a major renovation in the past five years, about 3 in 4 (78%) went over budget on their last project. Nearly half (44%) exceeded their budget by at least $5,000, while 35% exceeded it by at least $10,000.
With three months remaining in 2024, 45% of homeowners have already spent $5,000 or more on renovations this year, while 36% have spent $10,000 or more. The most common updates are bathroom remodels (37%), interior painting (33%), and HVAC upgrades (30%).
More than half of homeowners (53%) plan to spend $5,000 or more on renovations in 2025, while 40% plan to spend a whopping $10,000 or more.
About 1 in 3 homeowners (33%) borrowed $10,000 or more for their most recent home remodel, and 36% struggled to pay their credit card bill afterward.
About 3 in 4 homeowners who remodeled in the past five years (74%) have regrets — including 24% for overspending and 22% for the renovation taking too long. Even more, 47% preferred their home before the remodel.
Gen Z (89%) and millennials (82%) are far more likely to regret renovations compared to boomers (51%), despite being almost three times and twice as likely, respectively, to focus on renovations that increase resale value.
More than half of homeowners (52%) would rather DIY projects to save on costs. Of those who hired contractors, 53% went over budget and 46% experienced significant delays — compared to just 42% and 32% of DIYers. However, those who hired a professional (76%) were slightly more satisfied with the results than DIYers (71%).
An overwhelming 87% of homeowners faced challenges during their most recent renovation. 58% of renovations took longer than anticipated, with nearly one-third (32%) stopping due to unexpected costs and 29% firing contractors mid-project.
Still, 93% of homeowners plan to pursue a major renovation in the future.
Source: Clever Real Estate
© 2024 Florida Realtors®
