More than a third of homeowners want to replace or refinish their flooring, but inflation is impacting their desire to undertake home improvement projects, according to a recent survey by Discover Home Loans.

Inflation is significantly impacting homeowners’ desire to undertake home improvement projects, with 59% of survey respondents choosing to postpone their projects and 26% saying they will reduce the scope of their projects in the face of increased costs. That said, there remains strong demand for home renovation as 79% of homeowners surveyed still prefer to renovate their current house rather than move to a new home.

Rising interest rates are also having an impact on consumers' desire to move and purchase a new home. When asked how rising interest rates have specifically impacted their intention to purchase a new house, 42% of survey respondents said they are no longer looking to do so and an additional 21% are still looking but are less set on buying a new home.

The national survey of 1,500 homeowners was commissioned by Discover and conducted by Dynata (formerly Research Now/SSI), an independent survey research firm. 

“Our survey results show that homeowners are still looking to invest in their homes, despite higher home improvement costs," said Rob Cook, vice president of marketing, digital & analytics of Discover Home Loans. 

When asked what home improvements to undertake, homeowners are most interested in conducting routine maintenance, though the number of people wanting to do it decreased by 4 percentage points compared to last year’s survey. The number of Americans planning to remodel their existing bathroom jumped 5 percentage points while those wanting to update their appliances increased by 3 percentage points.

Similar to last year’s findings, 80% of homeowners surveyed agree they are making improvements as a way to invest in their home, and 82% agree they plan to make cosmetic changes to their home to better fit their style and needs.

An interest in making “green” or eco-friendly renovations to homes was emphasized in these results, with 59% of homeowners fitting them into their renovation plans. Nearly half of respondents said they were doing so because they are environmentally conscious, while 68% aim to save money on their energy or water bill. Interestingly, Gen Z and Millennials were found to be most likely to make green updates to their homes at 67%, versus 56% of Gen Xers and 47% of Baby Boomers.