When preparing to renovate your home, knowing your budget is one of the most important factors. Whether you’re a long-time homeowner, new homeowner or repeat buyer, these budget trends will help you properly plan your remodel project:
- Homeowners spent a median of $15,000 on their home remodeling project in 2017 – the same expenditure they made in 2015 and 2016.
- Long-time homeowners were more likely to undertake a home remodeling project than first-time homebuyers and repeat buyers. But it was repeat buyers who also spent the most on home remodeling – $25,000. New homeowners and long-term owners only spent about $15,000.
- No matter what they spent on their home remodeling project, homeowners overwhelmingly preferred to pay up-front. 85% paid with cash or savings, 33% used a credit card and the rest turned to a home equity loan.
- More homeowners are setting budgets for their home remodeling projects, though they are not necessarily sticking to them. 77% of homeowners set a remodeling budget in 2017 while only 69% did so in 2015. Nearly half reported exceeding their budget.
- Homeowners pointed the finger at themselves for why their remodeling projects went over budget. Most decided to upgrade their original product or materials. Another driving reason for cost overruns: homeowners changed the scope or design of the project.
- Nearly half of all homeowners said they will continue a former remodeling project or begin a new one in 2018 – and plan to cap their spending at $10,000. Meanwhile, 48% of homeowners plan to invest in new décor, about one-third plan to invest in home repairs and 3% plan to build a home.
For useful home renovation tips to help you stay within budget and get the most bang for your buck, read here:
- What's Your Home Worth? 4 Ways to Increase Property Value, Pt. 1
- What's Your Home Worth? 4 Ways to Increase Property Value, Pt. 2
- Renovate to Create Your Dream Home Without Breaking the Bank
- Create Your Remodel Plan to Fit Your Budget, Not the Other Way Around