More than one-third of homeowners would rather ditch their outdated home and purchase a new one than undergo a home remodel, according to a recent survey conducted by Adobe.
Could remodeling be all that bad? Adobe asked 1,000 American homeowners their thoughts on home remodeling projects and found the majority of homeowners exceeded budgets and those considering remodels avoid projects due to the high cost.
Cost Increases for Most Common Remodel Project
It’s no secret that remodeling project costs have steadily increased. According to data from Cost Vs. Value 2024, the cost of a midrange bathroom remodel increased 10% in a span of 10 years.
A recent report from Forbes identified bathroom remodeling as the second most popular project following new paint.
In 2024, the average cost of a bathroom remodel is $25,251 compared to $16,128 in 2014, a 44% increase. Costs for a midrange bathroom remodel increased 2.5% from 2023 to 2024.
Costs and Budgeting a Challenge to Homeowners
Adobe’s survey also found that 56% of homeowners who have remodeled went over budget.
For new homeowners, even more exceeded their budgets at 63%.
Still with higher costs, 63% of homeowners surveyed by Forbes paid for home improvement projects with savings and 22% used financing or loans.
Breaking down financing choices further, 28% of homeowners used credit cards, 9% used a personal loan, and 6% financed with a contractor.
Aside from the cost challenges, a selection of homeowners who remodeled recently cited timeline delays as the largest challenge during remodeling, with 38% of respondents. Then followed contractor coordination with 29% of surveyed homeowners and 25% said “not enough organization” was a top challenge.