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Homeowners sought residential financing for large custom homes in 2014

Posted on Tuesday, June 30, 2015 at 10:37:37 AM

In 2014, many people sought residential financing for custom homes - and large ones at that. 

A survey of 400,000 users of Houzz, a home design website, found that 1 in 20 respondents built a custom home last year, and that around 75 percent of those houses were multilevel. The majority of those homes have three or more bedrooms and bathrooms. 

These people didn't complete their custom home projects by themselves, though. Nearly all the homeowners surveyed, 95 percent, indicated that they hired professional help for their custom homes. Architects, interior designers and kitchen and bath experts were among the most popular service providers hired to help with custom homes in 2014. 

These custom homes are expensive to build though, and many homeowners who took on such a project last year sought residential financing to do so. The average spend on these houses, calculated by Houzz, was over $639,000. Of the survey respondents, 60 percent noted that they had taken out some kind of loan to pay for the construction of their homes. 

People who want to build their own custom homes in 2015 will likely also seek some sort of residential financing, to help cover the substantial cost.