Study: Most Homeowners Planning Renovations They Cannot Afford

Aug 13, 2019

The majority of homeowners carrying significant debt are planning to undertake home renovations, even though this stretches their budget beyond the fraying point.

According to a new survey by Freedom Debt Relief of 1,028 U.S. homeowners with at least $10,000 in unsecured debt, 69 percent said they planned to renovate their home in the next five years–even though 60 percent of these homeowners admitted that they could not afford the needed upgrades to their house.

Seventy-three percent of the homeowner respondents said they were going to finance their renovation project with a debt-based financial product. The top vehicles for the renovation projects were a home equity loan (40 percent) credit cards (38 percent), personal loans (32 percent) and a home equity line of credit (26 percent). Twenty-six percent of homeowners planned to spend more than $25,000 on renovations in the next five years, while 25 percent budgeted their spending between $5,001 and $10,000.

"The survey shows that homeowners who are carrying credit card and other types of debt – including student loan debt–in addition to their mortgage are more likely to finance their home renovations with a home equity loan, credit card or personal loan," says Michael Micheletti, director of corporate communications for Freedom Debt Relief. "Homeowners would be wise to save as much as possible, and look at their overall financial position before taking on even more debt–debt that could disrupt their bigger financial picture."

About the author

Phil Hall

Link copied

Published

Aug 13, 2019

Analysis and Data

Bay Area Buyers Bring Bigger Down Payments As AI Wealth Grows

New Realtor.com report suggests AI-driven wealth is reshaping competition for homes across California's most expensive markets

Artificial intelligence may be creating a new class of homebuyers in California — and mortgage professionals are beginning to see the effects.A recent Realtor.com report found that Bay Area homebuyers are continuing to make unusually large down payments even as mortgage rate...

Operations

APM Acquires Synergy One Lending, Forms $14B Lender

The deal marks CEO Dustin Sheppard's first major strategic move since taking the helm at APM in October 2025

On June 5, American Pacific Mortgage (APM) acquired Synergy One Lending (Synergy One), combining two of the top-30 retail lenders in the country, per Modex, to build a national platform “for the next era of retail lending,” according to APM’s press release.Following the deal...

Aug

Las Vegas, NV

More from

Renovation

Aging Housing Stock Drives Renovation And Lending Demand

With nearly half of homes built before 1980, rising teardowns and limited new construction are driving demand for renovation, construction, and purchase financing

Renovation

Mar 24, 2026

Millennials: The Renovation Generation

Despite owning fewer homes, millennials are outspending every other generation on maintenance, emergencies, and renovations as high mortgage rates push them to improve rather than relocate

Renovation

Jan 21, 2026

Stewart Acquires Mortgage Contracting Services

In a $330 million transaction, global real estate services provider adds property preservation specialist to expand its offerings in disaster inspections, maintenance, renovations, and other property-related services

Industry News

Nov 07, 2025

Fixer-Uppers Gain Popularity As Home Prices And Rates Stay Elevated

Fixer-uppers remain an entry point for stretched buyers, even as they lose luster as an easy profit play for seasoned investors.

Analysis and Data

Sep 23, 2025

Home Flipping Profit Margins Hit 17-Year Low In Q2 2025

The typical home flipper saw only a 27.5% return on investment

Analysis and Data

Sep 19, 2025

Equity Loans Key to Remodeling

1 in 10 homeowners put the entire cost to remodel on their credit cards