Skip to main content

Love The One You’re With: Home Improvements Trend Upward As Purchases Decline

Staff Writer
Jun 29, 2021

More than two-thirds of U.S. homeowners (67%) plan to tackle home improvements this year, according to the latest BMO Real Financial Progress Index.

KEY TAKEAWAYS
  • Renovations are on the rise with more than two-thirds of U.S. homeowners (67%) planning to tackle home improvements this year.
  • Nearly half of all U.S. homeowners (49%) plan to spend more on home improvements in 2021 than they did last year.
  • For those who refinanced their mortgage in the past year, the above figures jump to 84% and 67% respectively. 
  • This trend is only expected to accelerate, even as the rate of homebuying declines (22% in April versus 27% in January), suggesting a “love the one you’re with” mentality among homeowners. 

According to the latest BMO Real Financial Progress Index, renovations are on the rise with more than two-thirds of U.S. homeowners (67%) planning to tackle home improvements this year. Nearly half of all U.S. homeowners (49%) plan to spend more on home improvements in 2021 than they did last year. For those who refinanced their mortgage in the past year, the above figures jump to 84% and 67% respectively. 

Throughout the pandemic, while the purchasing market was heating up, many people invested in their homes with DIY projects and renovations. This trend is only expected to accelerate, even as the rate of homebuying declines (22% in April versus 27% in January), suggesting a “love the one you’re with” mentality among homeowners. 

"We have seen a lot of change in the housing market since the beginning of the pandemic – record low-interest rates, incredible demand, and more people working from home,” said Mark Shulman, Head of Consumer Lending at BMO Harris Bank. “Together, these factors are incentivizing existing homeowners to invest in their current home instead of buying a new home to get improved features.”

For homeowners planning renovations this year, the BMO recommends using these renovations to improve the value of your home. Kitchen and bathroom renovations tend to have the best return on home investment. The report also suggests securing a line of credit when rates are low. Having it available gives you quick access to cash at a low rate. Lastly, it’s important to maintain your financial momentum. Talk to your bank so you can understand the long-term impacts of using cash versus a loan versus a credit card for your unique project and financial profile.

"For those planning renovations, it's helpful to seek advice on how best to fund the renovations within your unique budget and long-term financial goals,” said Mark Shulman. “It's also important to talk with an advisor early to understand what you can afford. Our customers are often unaware of the many financial products they can consider that will help them continue to make real financial progress through their renovation."

The BMO Real Financial Progress Index is conducted quarterly to show how consumers feel about their personal finances and whether they are making financial progress. The aim of the study is to spark dialogue and humanize a topic that causes anxiety for many — money. For more information visit www.BMOHarris.com

About the author
Staff Writer
Katie Jensen is a staff writer at NMP.
Published
Jun 29, 2021
U.S. Housing Shortage Hits Record High: Analysis

Borrower demand remains strong, but is stifled by inventory and affordability barriers

Jul 14, 2025
DPR CEO Explodes DPA Myths

Lenders can use DPA programs as a proactive purchase strategy to serve more buyers — and compete better in a challenging market

Jul 14, 2025
June FHA MBS Report

The expected spike in delinquencies materialized

Jul 10, 2025
Move Over Florida, Wyoming Is No. 1

Wyoming led retiree growth from 2013–2023, while Florida and Arizona dropped to the bottom 10

Jul 10, 2025
Marrying Into Bad Credit Can Be Costly

Couples with mismatched credit scores can pay up to $437 more per month on their mortgage and face an elevated risk of breakup, studies show

Jul 10, 2025
More Sellers Pull Listings

Due to market conditions, prospective sellers likely to experience ‘the least seller-friendly summer since at least 2016,’ report finds

Jul 10, 2025