A new survey conducted by Regions Bank [1] has found that in lieu of finding a new home or selling, more U.S. homeowners are opting to remodel their current home in an effort to raise its value.
The survey, conducted by Regions Next Step [2], the bank’s financial education program, found that almost half (48%) of respondents said they were more likely to make updates to their current home in an effort to increase its value in the coming year, a figure up 7% year-over-year.
Younger homeowners were found to be more enthusiastic about taking on a home renovation or remodeling project, with 70% between the ages of 18 and 34 surveyed were more likely to make updates to their existing home, compared to 52% of those ages 35-54, and 40% of those ages 55 and over.
“Even in a competitive housing market, people still have a lot of options, including using their home’s equity to support a renovation or expansion of their current home,” said Michelle Walters [3], Head of Mortgage Production at Regions Bank. “Our mortgage and branch-banking teams work with homeowners one-on-one to talk about their options and create a financial roadmap toward achieving their goals. Whether it’s a renovation–or a new home purchase–we find that it pays to consult with a financial professional and identify the choices that are best for your needs.”
As part of National Homeownership Month, Regions Bank is spotlighting free resources available year-round to help homeowners and homebuyers understand and navigate the intricacies of owning a home. The Regions Next Step survey questions were part of a national online survey of 1,075 U.S. adults that took place between March 23-24, 2022.
And as Americans increasingly renovate their homes, understanding how to tap into home equity to finance projects is on the rise, as 42% of those polled felt knowledgeable about their financing options, compared to 38% of respondents who felt in the know about using their home’s equity last year.
“As people plan for and create dream homes, picking out new appliances and decorating may be the easiest part of the process. Choosing the right financing options to help make their vision a reality can be a bit more delicate to navigate,” said Joye Hehn [4], Next Step Financial Education Manager for Regions. “Regions is committed to providing free tools and resources that can help guide homebuyers and homeowners through the financial decisions that fit their needs and goals.”
Additional key findings of the Regions survey include:
- Renters are looking to the future, as nearly one in three (30%) plan to buy a home in the next 12 months.
- Finances are the biggest barriers to homeownership, as 31% of those polled cited finding an affordable home, and another 31% noted saving enough money for a down payment as the biggest financial barriers. Of respondents aged 18-34, 41% cited finding an affordable home and 39% noted saving enough money for a down payment as their top barriers.
- In terms of overall homebuyer education, 45% of Americans feel knowledgeable about the overall homebuying process. They also feel more knowledgeable about conventional mortgages (45%) than government backed mortgages (36%) or first-time homebuyer programs (30%).
Click here [5] for more information on Regions Bank’s survey findings.