More than a third of 2017 renovation spending was done on credit cards, despite the fact that Americans currently have the most home most home equity in history.
MarketWatch reports that the 2017 total of 36.4 percent is up from 29.5 percent of renovation spending on credit cards in 2011, and has grown steadily each year in between. Eighty-five percent of survey respondents still use cash and savings to pay for renovations, but only 15 percent reported using a secure home loan, far less than used credit cards.
What may be more surprising is that those who use cards for these large transactions aren’t focused on rewards. Among the top reasons owners gave for using a credit card rather than other financing methods, “quicker access to funds” was the biggest, at 38%, while “better rewards” only accounted for 25%.
Advertisement
Related Stories
Remodeling
Home Renovation Trends Report Shows Increase in Project Spending
A recent Houzz survey finds that the median spend for kitchen and primary bath projects jumped in 2022 and increased again in 2023
Trends
These Design Trends Get the Thumbs-Down From Boomers
Whether it's garage doors dominating a home's façade, outdated smart home features, or walk-in closets off the bathroom, homeowners in their 60s, 70s, and 80s have opinions
Trends
New-Home Trends: Home Sizes Shrink Further and Personalization Has Power
The National Association of Home Builders' latest new-home trends report shows homebuyers prefer fewer square feet, more personalization, and more tech