Why more homeowners are choosing to stay and upgrade

For many homeowners today, their starter home is morphing into their forever home. High mortgage interest rates and home prices, combined with general economic uncertainty, are pushing homeowners to redefine their goals and adopt a "stay and upgrade" mindset. It's all about renovation, not relocation.

As more homeowners decide to tackle home renovations to make their current home their castle, they need practical and flexible financing options.

A new definition of homeownership success

Not that long ago, homeownership success looked like buying a starter house, then moving on to something bigger and better a few years later. With today's high home prices and interest rates, that feels unrealistic to many homebuyers.

A new Citizens survey found that 43% of homeowners believe that success means feeling financially secure in their current home, even if it isn't perfect^¹. For 31%, success means making their existing home work for them in the long term through improvements, rather than moving^¹.

Why staying put feels more realistic than moving

Buying another home feels out of reach for the vast majority of homeowners, with just 13% viewing a home purchase as a realistic goal right now^¹. For others, the cost of buying is simply unaffordable.

That doesn't mean that homeowners are content to do nothing as they wait out the current economic climate. Instead, they are refocusing their energy on what they can achieve. For many, that means renovating their current home, with 44% saying making home improvements is the most realistic option over the next few years^¹. In fact, more than 70% have plans to tackle a home improvement project within the next two years^¹.

What barriers make moving less appealing?

The median home sale price in the U.S. has risen from $317,100 in 2020 to $405,300 by the end of 2025. Meanwhile, the average fixed interest rate on a 30-year mortgage has risen from 3.33% in April 2020 to 6.30% in April 2026.

High costs combined with uncertainty make moving less appealing to most homeowners, with 36% saying the cost of buying a home is a major barrier^¹ and 19% saying they don't want to lose the interest rate on their current mortgage^¹. For 22% of homeowners, the overall economy has pushed them toward renovating rather than moving^¹.

The rise of a "stay and upgrade" mindset

The data makes it clear: homeowners want to adapt their homes to their lives, rather than search for a new one. Stay and upgrade is the name of the game, with homeowners seeking out improvement projects that make their current houses more functional and comfortable.

Homeowners who decide to renovate view it as a strategic decision, rather than a compromise. With renovation, they can get a home that better meets their needs, without having to go through the process of finding an affordable house, packing up their belongings and getting a new mortgage.

Renovation as a strategic choice

As they choose to remain in their current homes, homeowners' renovation focus has shifted from luxurious to practical. In an uncertain economy, and with home prices out of reach, how people decide to renovate matters more than before. The goal is to prioritize upgrades that support their current lifestyle needs while providing them with long-term financial security.

To make those renovation projects a reality, many homeowners need access to clear and flexible financing, such as a home equity line of credit (HELOC). With a HELOC, homeowners borrow against the accrued equity in their home. Secured by the equity in your home, a HELOC typically offers lower interest rates than personal loans.

Flexible funding for a home that grows with you

Using your home's equity allows you to stay and upgrade, helping fund projects that make your current home work for the long term. A Citizens HELOC offers transparent terms and flexible access to your home equity, enabling you to cover the cost of renovations while you focus on what matters most.

Explore Citizens FastLine