Modernize Homeowner Insights 2024: Budgeting and Financing

As reflected in the 2024 Modernize Homeowner Insights Report, which gathered responses from over 150,000 U.S. homeowners, financial uncertainty remains a defining force behind project delays, scaled-down plans, and creative financing strategies. These insights align closely with emerging home services industry trends, where contractors are navigating more price-sensitive and financially anxious customers.

Key Findings

Most Homeowners Are Struggling Financially

Nearly half (49.81%) of homeowners say they are currently struggling financially, while only 7.11% describe themselves as “comfortable.” Still, 76.87% have not created a project budget at all, suggesting a wide gap between ambition and planning.

Among those who have created a budget:

• 31.35% base it simply on what they can afford
• 18.19% consult with professionals
• 17.01% rely on input from friends and family
• Only 13.59% use online cost calculators

Confidence in these budgets remains modest, with 58.18% saying they are only “somewhat confident” that their budget will cover project needs.

Low Spending Thresholds Define 2024 Projects

More than half (53.04%) of homeowners plan to spend $2,500 or less on their upcoming project, while another 29.52% expect to spend between $2,501 and $5,000. Fewer than 8% plan to spend more than $10,000. This downward pressure on spending has become a hallmark of recent home services industry trends.

Financing Is of Interest—But Only in Moderation When asked about project financing:

• 33.21% are open to financing up to 50% of their project
• 25.33% would finance up to 25%
• Only 16.23% would finance the entire cost

The top reason for not financing more is concern over high interest rates (50.24%), followed by debt aversion (13.02%) and fear of failing a credit check (10.04%).

What These Homeowner Industry Trends Mean for Home Services Professionals

1. Pricing strategies must reflect tighter budgets. Offer good-better-best tiered pricing or phased project plans to keep options on the table.
2. Educate your customers on budgeting. Provide transparent estimates, online cost calculators, or pre-consultation worksheets to build confidence.
3. Highlight flexible financing options. Position financing as a bridge to value—not a trap. Address interest rate concerns head-on.
4. Recognize that affordability is relative. Even small-ticket projects require justification and trust. Build that trust early.
5. These behaviors illustrate broader home services industry trends: more homeowners are financially strained, yet still willing to act when contractors make it easier to plan and commit.