Most Homeowners Feel Optimistic about Their Increasing Equity with Many Planning to Tap into It for Renovations - Seite 2

As low housing inventory continues to dampen homebuyer expectations, the survey hints at a bit of positive news, albeit in the distant future. Eleven percent of renovators are taking on projects with the intent to sell, and 33% plan on moving out within five years. Additionally, 36% of all homeowners are planning to sell their home within the next two years.

In addition to potential buyers, the survey highlights a bright spot for industry professionals, as 76% of renovators said they will hire professionals to help complete their projects.

Debt Consolidation Top-of-Mind with Homeowners, Yet to Act

Excluding a mortgage, 90% of those surveyed have debt - with over half (55%) having $10,000 or more. This includes credit card debt (67%), car loans (44%), personal loans (31%), student loans (25%) and medical debt (22%), with 59% perceiving their current interest rates as being too high.

As respondents consider how to pay off their loans most effectively, one option is debt consolidation. However, data indicates that there is an activation gap between intention and action. While 93% of survey respondents with debt other than their mortgage have not yet consolidated their debt under one loan at a lower interest rate, 71% said they would be interested in doing so – up 6% from 2022.

“Debt consolidation is a particularly attractive option in a higher interest rate environment, but it is a big step to consider since you are leveraging your home as collateral when you tap into your equity,” said Giles. “When used responsibly, consolidation products like HELOCs and HE Loans can help assist in paying down higher interest debt and create more manageable payments. But speaking with a lender is a good way for a borrower to make an informed decision."

Among respondents who are interested in consolidating their debt but are not comfortable using their home as collateral, preferred methods of debt consolidation include personal loans (39%), balance transfer credit cards (28%), cash out refinance (23%) and retirement account loans (6%).

Survey Methodology

This online CARAVAN survey was conducted by Big Village among a sample of 1,810 U.S. adults ages 18+ who currently own their home, last purchased a home within the past 10 years, and acquired a mortgage when they purchased their most recent home. This survey was live on September 28-October 8, 2023.

About Big Village

Big Village Insights is a global research and analytics business uncovering not just the ‘what’ but the ‘why’ behind customer behavior, supporting clients’ insights needs with agile tools, CX research, branding, product innovation, data & analytics, and more. Big Village Insights is part of Bright Mountain Media. Find out more at https://big-village.com/.