Renovation dreams vs. renovation dollars: How homeowners are adapting in today’s economy

You've got a Pinterest board full of home renovation ideas, follow all the home design and decor influencers and long to transform your house into your dream home. But then reality hits. Renovating your way to your "dream home" is going to require cash that you don’t have on hand.

You're not alone. Many homeowners want to upgrade and renovate their homes, but cost concerns are steering their projects in a different direction than they anticipated. A recent Citizens survey reveals that affordability is the name of the game in today's economic climate, pushing homeowners to focus on practical projects and DIY choices as they plan their renovations.

Costs are eating up the renovation appetite

Whether it's a complete kitchen overhaul, a more appealing patio or a finished basement, the demand for remodeling and renovation is there. That is, until homeowners see the price. 51% of homeowners pin, screenshot or save home projects and design ideas they want to bring to life but are currently out of their price range¹.

High costs and sticker shock are having a real impact on the projects people take on. In fact, 27% of homeowners feel overwhelmed by the cost of home upgrades today¹. One-third (33%) have delayed taking on a renovation project due to the current economy¹.

Practical wins replace nice-to-haves

While many homeowners are feeling less confident about starting a renovation project due to affordability concerns, that doesn't mean they aren't doing any remodeling at all. Out are dramatic overhauls and makeovers. In are upgrades that improve the home's function or durability, or that allow homeowners to make the most of what they already have.

Nearly two-thirds of homeowners, 64%, are making necessary repairs or replacements the priority¹, while 57% are focusing on reworking their existing space¹. Just 17% are prioritizing indulgent upgrades¹.

As DIY rises, spending trade-offs become normal

It's not just the type of projects people are choosing that has changed. Homeowners are also looking for ways to reduce the overall cost of a renovation, with 34% saying the most important thing is spending as little out of pocket for their home improvements as possible¹.

They're putting projects on hold or reducing the scope of a remodel, and in 30% of cases, rolling up their sleeves and jumping into DIY projects to cut costs¹. In addition, 66% have put off or considered putting off another big purchase to cover the cost of their home renovations¹.

Social media fuels the inspiration engine

Although the reality of renovation for many homeowners may be less glamorous than they wanted, behind the scenes, social media is fueling the dream.

Homeowners feel consistent motivation to take on big, expensive and awe-inspiring projects, with 57% saying home transformations on social media inspire them to make upgrades to their own home¹. Over half, 56%, say they frequently or occasionally save or pin project ideas they want to bring to life, but can't afford at the moment¹.

Affordability decides what gets built

Social media may provide inspiration, but at the end of the day, affordability determines which projects come to life. The feeling of being overwhelmed by costs and prioritizing the practical, DIY projects suggest that homeowners want to renovate, but are proceeding with caution.

Turn inspiration into reality with flexible funding

Whether you decide to make necessary upgrades to your property, rework existing rooms to make them work for you or want to make your renovation dreams come true, a home equity line of credit (HELOC) can help you get there.

A Citizens HELOC offers fast, flexible funding, giving you access to your home's equity so you can move forward with higher-cost projects in a way that suits your budget.

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