Tight Housing Market Prompts More Renovations

Homeowners need to plan ahead for their remodel as rising material costs and supply chain issues are prompting delays in even smaller-scale projects.
A woman holding a clipboard and tools looks upon the exterior of her home during a renovation.

© Guido Mieth - DigitalVision / Getty Images

A growing number of homeowners are viewing reports about the lean housing inventory and fierce buyer competition and may increasingly be deciding to stay put and renovate their current home instead.

Seventy-nine percent of more than 1,500 homeowners surveyed say they’d rather renovate their current home than move to a different one, according to a survey conducted by Discover Home Loans.

Two tables of survey responses: the top five home improvements, and the top five reasons people would rather renovate than move.

But home renovations aren’t easy to take on lately. Forty-two percent of homeowners say that rising interest rates are delaying their home improvements. Also, nearly half say that they have faced material delays in their house projects.

More than half of homeowners—57%—say they have undertaken projects that have gone over budget. Nearly two in three report their project cost has increased since their initial contractor bid, too. Forty-two percent of homeowners say they have delayed their home improvement project because of rising costs.

“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,” says Rob Cook, vice president of marketing, digital, and analytics of Discover Home Loans. “The best first step is to get your financing in order.”