Remodeling Demand Is Strong. Conversion Is Not.

The home improvement market continues to show resilience. Remodeling activity remains supported by aging housing stock, higher mortgage rates keeping homeowners in place, and an increase in need-based repairs.

For many established contractors, demand is not the issue. Projects are still coming in, and homeowners are still investing in their homes.

But the environment has shifted.

Project sizes are growing. Financing is becoming a more common part of the conversation. At the same time, homeowners are more selective in how they evaluate contractors, pricing, and how they choose to pay for a project.

On the ground, that shift shows up in a consistent way. Projects that should move forward do not always convert.

Homeowners hesitate, delay, or pause altogether. In some cases, they walk away entirely. And it is not always about whether they want the project. It is about whether they feel confident moving forward with it.

Why We Took a Closer Look

We wanted to better understand what is happening in that moment between interest and commitment.

Not just whether homeowners choose to move forward, but how they think, feel, and decide when financing becomes part of the conversation and the overall project experience.

To do that, Slice^® by FNBO partnered with an FNBO consumer panel to conduct two complementary studies in December 2025:

• A quantitative study of 947 U.S. homeowners who completed or planned a home improvement project over $15,000
• A qualitative study with 105 homeowners who completed or planned a home improvement project over $15,000, exploring their experiences, concerns, and decision-making process in more depth

Together, these gave us both scale and context. What homeowners are doing, and why they are doing it.

What We Found

Across both studies, a consistent pattern emerged.

Homeowners are not pulling back from home improvement. They are motivated to improve their homes, invest in their spaces, and move projects forward. Financing is often part of that plan.

• 79% say they are likely to finance a future project
• 94% of those who finance are satisfied with their experience

That is where hesitation shows up:

• 68% worry about hidden fees with financing
• 51% say financing options feel confusing
• 59% say they would walk away from a project due to lack of trust in the process or contractor

This hesitation is not limited to financing alone. It reflects how homeowners evaluate the entire project, with financing often becoming the moment where that uncertainty becomes most visible.

This drop-off happens before application, not after approval.

As one homeowner put it:

"Once I did it, it was fine. It was deciding to do it that was stressful."

Homeowners Are Informed, But Still Evaluating Risk

Most homeowners today come into the process informed. They research options, compare providers, and try to understand what financing looks like before making a decision.

• 85% say they feel confident comparing financing options
• But only 65% feel confident identifying which options are trustworthy

That gap between understanding and trust is where uncertainty builds.

From the homeowner's perspective, financing is not just a transaction. It is part of the broader project decision, and it introduces risk if it is not clearly understood.

"Everything looks good until you read the fine print."

"The information is out there, but it's hard to tell what's real."

Even when the numbers work, the experience does not always feel predictable or easy to navigate.

Excitement and Hesitation Exist at the Same Time

One of the most important takeaways from the research is that homeowners are not simply hesitant. They are balancing competing emotions.

They are excited about the outcome of the project and what it will improve in their home and daily life. At the same time, they are thinking through cost, financial impact, and whether they are making the right decision.

When asked what comes to mind when taking on a large project, homeowners most often described:

• The opportunity to improve their home and lifestyle
• Cost considerations and affordability
• Stress tied to making a significant financial decision

Homeowners shared:

"It's exciting, but it's also something I lose sleep over."

"I want the project done, but the financing makes me nervous."

This is not a lack of demand. It is a moment of evaluation.

Timing and Experience Shape the Outcome

The research also highlights how early financing enters the decision process.

• 42% of homeowners consider financing before selecting a contractor
• 47% want financing acknowledged during the estimate process
• BUT 46% disengage when financing feels pushed too aggressively

That tension is critical.

Homeowners want:

• Awareness of options early
• Control over the decision
• Time to process

They do not want:

• Pressure
• Oversimplified pricing
• A sales-driven financing conversation

"I want to know it's an option, not be sold on it immediately."

How financing is introduced and discussed can either build confidence or create hesitation.

What Builds Confidence and Moves Projects Forward

When homeowners feel confident, they move forward. The research shows that confidence is driven by a combination of clarity, transparency, and trust across the entire experience, not just financing.

The strongest drivers of confidence include:

• A clear, transparent estimate (68%)
• A defined project timeline (70%)

In fact:

Confidence is not driven by the number of options alone. It is built when those options are clearly explained, transparent, and easy to understand.

The Opportunity for Contractors

For contractors operating at scale, this is where performance differences show up.

Homeowners do not separate the contractor, the financing, and the overall experience. It is one decision.

The opportunity is not just generating more demand. It is converting the demand that already exists.

For contractors focused on growth, this directly impacts close rates, sales cycle length, and the ability to move larger projects forward with confidence.

Homeowners are ready to move forward. They are open to financing. They are motivated by the outcome of the project.

The contractors who consistently win are the ones who reduce uncertainty early in the process and create a clear path forward.