One-Third of Homeowners Fund Renovations With Credit Cards
October 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.
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.”
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