Study Finds U.S Homeowners Choose Secured Financing Options For Large-Scale Home Renovations

- Dec 12, 2018-

U.S. homeowners who leveraged secured financing to pay for renovations in 2017 were able to take on larger home improvement projects, with nearly three times the median spend of those who paid for renovations with cash-only ($32,000 versus $13,000), according to a study released today by Houzz Inc., in collaboration with Bank of America.

The study explored the role of secured financing in U.S. home improvement and found that one in seven homeowners who used secured financing—such as a home equity line of credit, home equity loan or cash-out refinancing—took on major remodeling projects. In fact, homeowners who spent $50,000 or more on renovations were three times more likely to pay with secured financing than those spending between $5,000 and $14,999, according to the study.