US homeowners regret costly renovations, study finds

High home prices and mortgage rates are keeping many American homeowners from moving into a new home. More than 6 in 10 say they would rather renovate their current home than move into a new one, according to a new survey of 1,000 homeowners conducted by Clever Real Estate.

They don’t let financial constraints stop them from customizing their living space. About 40% of homeowners plan to spend $10,000 or more on renovations in 2025. However, nearly 80% of homeowners went over budget on their latest renovation, and two-thirds went into debt to finance home improvement projects.

As a result, 74% of homeowners regret renovating; Almost half say they liked the house better before the renovation.\

Repairs are getting more expensive

About 45% of homeowners spent $5,000 or more on renovations this year, and 36% spent $10,000 or more. Nearly half (44%) plan to spend more on home renovations this year than last year.

More than three-quarters of homeowners said their latest project went over budget. Nearly half of overspenders (44%) said the job cost at least $5,000 more than expected, and 35% spent $10,000 more than expected.

Faced with huge expenses, homeowners have two choices: find the money or stop working. About 32% stopped a renovation project before completion due to unexpected costs. About 63% took out debt to complete the job.

Many renovators who borrowed money to complete their projects later suffered financial consequences—about 36% struggled to pay their credit card bills after completing their home renovation.\

When renovating, less is more

Ninety-four percent of homeowners have completed major renovations in the past five years, and 93% have completed minor renovations in the same period.

The most popular major renovation was a bathroom remodel, completed by 37% of homeowners. About 33% of homeowners painted their interiors, and 30% upgraded their heating and air conditioning.

“Because I work in a market where there are a lot of older homes, many of which were built without central air conditioning, adding a central air system is an upgrade that will almost always give you a better return on investment,” said Cleveland real estate agent Jeffrey Hoffman. . “And you can enjoy it too.”

For minor renovations, 36% installed new faucets, 35% installed new light fixtures, and 34% completed minor kitchen renovations.

Interesting twist? Some minor repairs are more beneficial than major ones. Data shows that minor kitchen remodels recoup about 96% of the cost when selling a home, while major kitchen remodels typically recoup only 38%.

One of the most worthwhile repairs is a garage door upgrade, which has a resale value of nearly double the cost of replacement. However, only 19% of homeowners have completed these renovations in the past five years.

Weighing the pros and cons

Ninety-two percent of homeowners said renovating their home had a positive impact on their lives, but 74% of renovators expressed regret.

About a quarter of homeowners (24%) said they spent too much money, the most common regret. Another 22% regret that the repairs were delayed.

About 1 in 9 homeowners disliked their home after renovation, and nearly half of renovators said they liked their home better before renovation.

Young people were much more likely to experience regret after renovation. Only 51% of Boomers regretted their renovation, while 82% of Millennials and 89% of Gen Z renovators expressed regret.\

Homeowners will do it themselves.

Most homeowners would do the project themselves to save money instead of hiring a professional. The most popular DIY home improvement projects are fairly simple: 62% painted the interior, 61% installed new light fixtures, and 59% sealed or painted a deck.

Many homeowners would take on even more complex projects. More than a third said they would feel comfortable replacing the roof, replacing the electrical system, adding an addition to the home or upgrading the plumbing.

However, many homeowners don’t consider the possibility that mediocre DIY renovations could hurt their home’s value more than help it.

“One universal truth is that any substandard improvement or renovation will hurt value,” Hoffman said. “New is not always better. An old kitchen in good condition is better than a cheaply renovated new kitchen installed with poor workmanship.

“Unfortunately, I often see houses flipped over or renovated by DIYers who did a bad job or just made terrible design choices. They would be better off leaving it alone, learning how to do it properly, or hiring a professional.”

This article was produced by Media Decision and distributed by Wealth of Geeks.