Whether staying put or moving to a new neighborhood, homeowners are invested in making their personal spaces more appealing: so much so, that when Marcus asked 1,002 homeowners if they would change their behavior for free home renovations, the response was an overwhelming yes.
When considering the expense, it’s easy to see why: last year, the National Home Builders Association said the average cost for a midrange bathroom remodel was $18,546; upscale window replacements averaged between $15,282 and $18,759 based on material; and the average for a major midrange kitchen replacement was $62,158.
Looking at these numbers, and taking into account that about 65% of the people we asked planned to spend less than $10,000 on home improvement projects this year, covering an additional $50,000 or so by giving up sex, smartphones and coffee for tile, countertops and cabinets may feel like a reasonable trade.
Home Renovation and Improvement Survey from Marcus by Goldman Sachs®
Almost 1 in 4 homeowners told us they would use credit cards to pay for their debt (and 25% said they had up to $5,000 on hand for their projects).
What they were most worried about, however, may be considered unseen “extras” that could get tacked on to their budgets: 39% of the homeowners we asked were most worried about being blindsided by fees, regardless of whether they were considering credit cards, home improvement loans, home equity loans, or home equity lines of credit for financing.
This one concern overshadowed other worries on the list, such as borrowing against the value of their homes or having to tangle with variable interest rates.