Report: 2022 to See Increased Spending on RemodelingSeptember 26th, 2022 by Travis Rains
Home renovation activity and spending are at their highest levels since 2018, with more than half of homeowners indicating that they plan to renovate this year per a 2022 Houzz & Home Study on renovation trends in the United States.
According to the Houzz survey of 67,554 users, including 33,711 renovating U.S. homeowners, renovation and spending activity are at the highest rates reported since 2018. The survey found that 55% of homeowners renovated in 2021, a 2% increase from one year prior. Homeowners also reported a 20% increase in 2021 median spending, with that figure clocking in at $18,000.
Recent homebuyers, accounting for 10% of renovating homeowners, also spent more in 2021. In fact, they spent nearly double the $30,000 median in 2021.
“Recent homebuyers with higher-budget projects (the top 10% of spend) invested $175,000, compared with $100,000 for short-term homeowners and $90,000 for long-term homeowners,” the Houzz survey continues. “This higher spend potentially can be attributed to the number of projects recent homebuyers undertake at a single time – an average of three to four rooms …”
Homeowners are also spending more renovating guest bathrooms, a 25% investment increase, and guest bedrooms, 28%. Credit cards are used increasingly for such projects as well, rising by 6% to 35% in 2021.
“While wanting to do it all along and finally having the time and/or the financial means remain the top two motivators for home renovations in 2021, about one in four homeowners, 26%, was motivated by wanting to customize a recently purchased home,” Houzz writes. “The share of homeowners motivated by customization increased by four percentage points since 2020.”
However, renovations planned with respect to selling a home fell from 10% in 2020 to 9% in 2021.
Moving onto the current year, 55% of homeowners plan to renovate in 2022, a 1% difference from the percentage of those indicating they planned to renovate in 2021, 56%. Another 46% intend to decorate in 2022.
Of importance is not only the percentage of homeowners indicating their renovation plans, but the amount of money they intend to spend on those efforts.
“For the first time since 2018, homeowners’ planned spend has increased,” Houzz reports. “The median has been $10,000 for the past three years and is now $15,000, a 50% jump. Additionally, homeowners with higher-budget projects (the top 10% of spend) plan to spend $75,000 in 2022 compared with $60,000 in 2021.”
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