The best way to finance home improvements is to pay cash, but that’s not always an option. After all, home repairs and renovations aren’t cheap. The median amount homeowners spent on home improvements in 2022 was $22,000, according to a recent survey on home renovation trends by home design website Houzz. Even relatively contained projects can be costly: Bankrate says the average US homeowner spends about $8,600 on a new roof, and minor kitchen renovations can easily cost between $10,000 and $15,000. But with homeowners reluctant to give up the 3% mortgage rates they got during the pandemic housing boom, even pricier renovation projects seem mighty appealing to people who plan to stay put.
“Faced with shortages of housing stock and high interest rates, we’re seeing homeowners update their current homes to make the space more functional for the long term,” said Liza Hausman, vice president of industry marketing at Houzz. “We’re also seeing an uptick in additions, with the vast majority of homeowners hiring professionals to achieve their goals.”