Love It or Leave It? Americans Prefer Renovations

By Zillow Research on Oct. 11, 2018

Given a choice between spending money on a down payment for a new home or using that same money to fix up their current home, 76 percent of Americans choose to renovate, according to the new Zillow Housing Aspirations Report.

The share is even higher — 87 percent — for people who are 55 years old or older. And retirees are higher still, with 91 percent saying they’d stay put and upgrade rather than use the same money toward a down payment.

The large share of people wanting to stay put makes sense when you consider that 83 percent of homeowners love their homes – a finding from the 2018 Zillow Group Report on Consumer Housing Trends. Indeed, most homeowners – 63 percent – have no plans to sell their homes. The top reasons people give for not moving are that they love their homes and they don’t want to deal with the hassle of moving.

Rising mortgage rates could be a factor. Since the beginning of the year, rates have risen about 90 basis points, and homeowners who have a low mortgage rate may not want a new mortgage at a higher rate.

The desire among homeowners to stay where they are could be contributing to an ongoing inventory shortage. Nationally, the number of homes for sale has fallen on an annual basis for 43 straight months, although the pace of its decline has slowed in recent months. It also can become a self-fulfilling cycle: If homeowners hesitate to sell because they see few options on the market, they stay in their current homes – and inventory remains low.

Among the 20 metros surveyed for the Zillow Housing Aspirations Report, residents of Boston and Detroit were most likely – 80 percent – to choose renovating over buying. In Los Angeles, the smallest share of respondents – just over two-thirds – prefer renovations.

The survey results include homeowners and renters. Even the majority of renters (67 percent) as a solo group, separated from homeowners, prefer making changes to their rentals to putting that money toward a down payment on a home purchase.

see original at: https://www.zillow.com/research/americans-prefer-renovations-21576/?utm_source=email&utm_medium=email&utm_campaign=emm_h_0319_hbuzzrenovateorsell&utm_content=herobutton