The marketplace is challenging for both buyers and sellers right now, and because of that, more homeowners are investing in renovations. According to a report from real estate technology company Clever Real Estate, high prices and rising interest rates make it difficult for many to move, so homeowners are choosing to update their current homes instead.
Despite rising remodeling costs due to inflation, spending on renovations is expected to reach $485 billion in 2024, up from $363 billion in 2020. A survey shows that 63% of homeowners prefer to remodel rather than buy a new home, even though renovations often cost more and take longer than expected, with 78% of homeowners going over budget, 41% facing delays, and 74% having regrets about their projects.
87% of homeowners faced challenges during their home renovation, with 27% saying the most difficult challenge was budget constraints.
About 44% of homeowners say they're spending more money on home renovations in 2024 than they did in 2023.
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