New Remodeling Research: Separate the Project Quote from the Funding Plan
Harvard’s November 4 analysis examines how homeowners funded improvements in 2023. Turn the findings into a clearer project and payment checklist.
Research published November 4, 2026 · Reviewed November 13, 2026.
A contractor’s total answers one question: what the quoted work costs. It does not tell you when each payment will fall due or whether money will be available on that date.
What the new analysis actually measures
A November 4 Harvard Joint Center for Housing Studies analysis uses the 2023 American Housing Survey. Cash was the main funding source for 63.8% of homeowner improvement spending; equity-based financing accounted for 11.7%, insurance settlements 9.7%, credit cards 4.2% and contractor-arranged financing 3.3%.
These are historical spending shares, not a November 2026 borrowing-rate survey or a recommendation for an individual homeowner. The research also finds that equity-based funding plays a larger role in more expensive projects. Read the original Harvard analysis for its definitions and methodology.
Build two lists before signing
On the first list, write down the work: demolition, repairs, materials, installation and finishing. On the second, write down payment dates and what must be completed before each payment is due. Ask the contractor to explain any mismatch between the two.
- Scope
- What work is included?
- Milestone
- What triggers the invoice?
- Funds
- What is confirmed for that date?
An example: the delivery date moves
Imagine a kitchen project where cabinets arrive two weeks late. A calendar-based invoice might still fall due while installation has not started. A written agreement should explain what happens in that situation. Ask the question before the delay exists, and record the answer with the payment schedule.
This example is a planning exercise, not a statement about the survey participants. Its purpose is to expose an assumption that a headline project price leaves hidden.
Keep uncertainty visible
Separate confirmed funds from amounts still awaiting approval. Identify optional upgrades that could be postponed, and keep the allowance for unexpected work visible rather than quietly spending it on finishes. A funding choice needs its own assessment of terms and household circumstances; these research percentages cannot make that choice for you.
Continue with our guides to contractor payment milestones, project contingency and remodeling allowances.