Planned Renovations and Spending Hit 4-Year High

According to the 2022 Houzz & Home Study, renovation projects and spending on home renovations are at their highest rates since 2018. In 2021, 55 percent of homeowners renovated their spaces, up from 53 percent in 2020 and 54 percent in both 2019 and 2018. Median spend on renovation projects increased 15 percent last year and an additional 20 percent this year, for a median spend of $18,000. Homeowners with higher budget projects increased their budgets from $85,000 in 2020 to $100,000 in 2021. 

The study, which surveys 70,000 U.S. households, also found that the increase in renovation projects will continue into 2022, with 55 percent of homeowners planning to renovate and 46 percent wanting to decorate this year. Planned spend is $15,000 in 2022, up from $10,000 the last three years. 

Kitchens remain the most popular interior room to renovate, and the spend in 2021 was up 25 percent, from $12,000 in 2020 to $15,000 in 2021. Recent homebuyers, those who have not yet moved into their home or moved in less than a year ago, accounted for 10 percent of renovating homeowners in 2021. 

“Market fundamentals, including limited and aging housing stock, continue to propel the home renovation market,” says Marine Sargsyan, Houzz staff economist. “Homeowners are clearly committed to investing in their homes despite heightened product and material costs driven by supply chain disruptions, and are exploring diverse funding sources. This is especially pronounced among recent homebuyers, who rely heavily on cash from previous home sales to fund their projects and spend significantly more than the national median.”

In 2021, more homeowners turned to professionals to complete their renovations, up to 89 percent versus 87 percent in 2020. They also spent nearly 25 percent more on security systems, with outdoor security systems three times more popular now than they were in 2015. 

Discover more housing trends from economist Nadia Evangelou here.

Featured image courtesy of Houzz©