Amid high mortgage rates and an evolving housing market, many US homeowners are opting to renovate rather than move, according to a recent survey by Nationwide.
The data suggests a growing trend of homeowners choosing to invest in property upgrades and repairs to better suit their current needs.
Nationwide’s Homeowners Survey found that 51% of respondents had undertaken a major renovation in the past two years.
The survey revealed a marked difference in spending patterns between homeowners in general and those classified as empty nesters. While both groups engage in renovations at similar rates, empty nesters are investing more heavily in these projects.
Nationwide’s data shows that empty nesters spent an average of $8,670 on renovations, in contrast to the $5,128 spent by the typical homeowner.
This older demographic is more likely to take on large-scale projects, outspending others on upgrades such as kitchen remodels and full-home renovations.
The average costs of specific renovation projects highlight the difference in spending. For example, the typical U.S. homeowner spends around $9,702 on a kitchen remodel, while empty nesters spend an average of $18,672.
Similarly, full-home renovations average $36,900 for general homeowners and $90,000 for empty nesters, with window replacements costing $4,917 and $15,375, respectively.
Nationwide’s president of P&C Personal Lines, Casey Kempton, noted that a challenging housing market has led many homeowners to improve their existing homes rather than relocate.
He highlighted the potential insurance gaps resulting from these renovations, urging homeowners to consult with independent insurance agents to ensure they’re adequately covered.
Rising contractor costs have also pushed some homeowners to take a do-it-yourself (DIY) approach to home improvements.
The survey found that three out of four homeowners identified high contractor fees as a barrier, with fewer than half reporting ease in finding reputable contractors.
Consequently, 38% of homeowners have opted to tackle projects traditionally left to professionals, such as kitchen remodels or home additions. Popular DIY projects include basement renovations (43%), front door replacements (41%), and bathroom remodels (39%).
Despite the financial appeal of DIY renovations, Nationwide warns that these projects carry risks that may affect a home’s safety and insurance coverage.
Kempton emphasized that while DIY work can cut costs, unaddressed issues could lead to safety hazards and unexpected expenses. He advises homeowners to consult an insurance agent before starting major DIY projects to ensure they’re protected from potential liabilities.
Notably, homeowners’ reliance on online resources for DIY guidance varies by age, with empty nesters less likely to turn to social media for advice compared to younger generations.
Nationwide’s survey also reveals that many homeowners overlook updating their insurance policies after completing major renovations, with 55% reporting no adjustments.
Insurance agents, who often have local connections with trusted contractors, can support homeowners through the renovation process, helping ensure adequate coverage for their upgraded homes.
Do you think homeowners should consider policy adjustments as essential to the renovation process? Share your thoughts in the comments.
