Houzz, the leading platform for home remodeling and design, released its 2023 Houzz & Home Study, which shares key insights from homeowners into the renovation market and homeowner motivations and needs when it comes to renovations. The report included more than 46,000 U.S. respondents.
The study found that more than 60% of homeowners planned to stay in their home for 11 years or more following a renovation, indicating any remodeling homeowners take on should have a big bang for their buck. The number of homeowners undertaking renovations with a plan to sell their home soon has declined by half since 2018, down to 6% this year compared with 12% in 2018.
In 2022, 58% of homeowners did a remodel, spending an average of $22,000. More than half of the respondents indicated they were planning a renovation project for 2023 with a median spend of $15,000.
Most likely a response to the continuing tight housing market, additions were up in 2022, with 10% of homeowners adding on to their homes compared to 8% from 2018 to 2021. Kitchens, bathrooms and living rooms were the rooms with the most additions.
“Faced with shortages of housing stock and high interest rates, we’re seeing homeowners update their current home to make the space more functional for the long term,” says Liza Hausman, vice president of Industry Marketing at Houzz. “We’re also seeing an uptick in additions, with the vast majority of homeowners hiring professionals to achieve their goals.”
As homeowners look to update their spaces, kitchens and bathrooms continue to be the most popular areas to renovate. Kitchens and primary bathrooms also command the highest median spend: $20,000 and $13,500, respectively. Broken down by generations, baby boomers renovated the most, with 59% taking on projects in 2022.
To fund their renovations, 82% of homeowners relied on savings, but the number of homeowners using home loans bumped up to 16%, up from 14% in 2020.
Read the full report here.