Skip to main content

One-Third of Homeowners Fund Renovations With Credit Cards

Phil Hall
Oct 26, 2018
When it comes to paying for renovations on a house, one in three homeowners pull out their credit cards to finance their upgrades

When it comes to paying for renovations on a house, one in three homeowners pull out their credit cards to finance their upgrades.

According to a survey of survey of 10,602 homeowners by Houzz, 33 percent of respondents paid for their 2017 renovation via their credit cards as part of a funding combination that included cash and other personal finances. The typical credit card payer reported spending $10,000 on renovations last year, with between $1,500 to $4,800 charged to a card.
Among the demographics charging their renovations. Millennials were more likely to pay with a credit card (41 percent) versus those 35 to 54 years old (34 percent) and those 55 and older (30 percent). Sixty-two percent of credit card users planned to pay off card balances over time.
“Aging housing stock, low inventory of homes for sale, and major demographic shifts are driving up demand for home improvements, so it is natural for consumers to look for advantageous financing methods in order to smooth out renovation spend over time,” said Nino Sitchinava, Principal Economist at Houzz. “Based on our study, credit cards appear to be a competitive financing method for a large share of renovating homeowners, likely explaining the recent acceleration in credit usage.”
Oct 26, 2018
More from
Calif. Investors, Lenders Mobilize Against Speculation Act

'They’re looking to decimate the industry without realizing the result of that decimation': Nema Daghbandan, a partner in Geraci LLP, said.

Mar 18, 2022
TPO GO, the Renovation Mortgage Solutions Hub

The Real Estate Finance Business is changing in 2022. Renovation mortgage lending is a necessary tool in any mortgage broker’s purchase lending tool belt.

Jan 11, 2022
Home-Flipping Profits Drop To Their Lowest In 10 Years

This marks the largest annual decrease in profit margins since early 2009 when the housing market crashed.

Dec 16, 2021
Poor Market Conditions Make Real Estate Investors Turn Sour

48% of investors believe that the investment market is worse or much worse than it was one year ago.

Sep 29, 2021
The Fix Is In For Experienced Flippers

Knowledgeable Investors Have The Advantage Over Newbies In Pandemic Housing Market

Sep 24, 2021
Are Originators Overlooking The Remodeling Sector?

Freddie Mac sees it. The Harvard Joint Center recognizes it. And at least one giant bank is on to it, too. The question is: Are you?

Sep 20, 2021