More Than 70 Percent of Homeowners Surveyed Have Delayed a Home Repair or Improvement Due to Their Financial Situation
June 19 2018 - 4:00AM
Business Wire
Nearly Sixty Percent of Homeowners Surveyed
only have $5,000 or less to spend on unexpected Home Repair
Costs
According to a new study of more than 1,040 American homeowners
by Discover Personal Loans, 72 percent have delayed making
improvements or repairs to their home due to their financial
situation, with 42 percent delaying the project for more than a
year. However, when asked whether they were prepared, nearly 54
percent of respondents said they are financially prepared to cover
an unexpected home repair.
When asked how much money they have available to pay for an
unexpected repair, nearly three in five (59%) homeowners said they
don’t have enough funds to pay for a home repair that costs more
than $5,000. That number goes up among millennial homeowners (aged
18-34), with 79 percent not being able to cover the same
amount.
According to The True Cost of Home Improvement report by Home
Advisor, homeowners who don’t have at least $5,000 may not be able
to cover some of the most basic home repairs. Larger repairs such
as installing an AC unit or new roof can cost up to $10,000 and
over $12,000 1 respectively.
In addition, planning and budgeting for home repairs appears to
be a challenge for homeowners surveyed. Nearly one-third (30
percent) of homeowners said that their last unexpected home repair
cost more than what they expected.
“The survey indicates that a significant majority delay home
repairs and remodels because of limited savings,” said Dan Matysik,
vice president of Discover Personal Loans. “Unfortunately, these
delays may cost homeowners more in the long-run with additional
repairs. If an unexpected home expense arises, homeowners should
consider looking into fixed-rate funding options that provide quick
access to funds, such as personal loans, to help complete their
projects.”
Interestingly, responses to the survey questions were fairly
similar across income brackets. For example, 50 percent of
homeowners that earned less than $40,000 delayed a home improvement
or repair for more than a year as compared to 46 percent among
those making $40,000 to $80,000. Additionally, 34 percent of
homeowners that earned more than $80,000 delayed a home improvement
or repair for more than a year.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Global Network comprised of Discover Network, with
millions of merchant and cash access locations; PULSE, one of the
nation's leading ATM/debit networks; and Diners Club International,
a global payments network with acceptance in 190 countries and
territories. For more information, visit
www.discover.com/company.
ABOUT SURVEY
All figures, unless otherwise stated, are from YouGov Plc. Total
sample size was 1045 adults who are homeowners. Fieldwork was
undertaken between 22nd - 24th May 2018. The survey was carried out
online. The figures have been weighted and are representative of
all US adults (aged 18+).
1
https://www.homeadvisor.com/r/true-cost-of-home-improvement/
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version on businesswire.com: https://www.businesswire.com/news/home/20180619005288/en/
Media Contact:Sarah Grage
SilbermanDiscoversarahgragesilberman@discover.com224-405-6029@Discover_News
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