According to the recent 2018 Houzz & Home Study on renovation trends, the home renovation boom we've been experiencing since 2015 will continue, with kitchen and bathrooms leading in terms of frequency and spend. And while homeowners who've been in their dwellings for six years or more drive the majority of home renovations, remodeling activity among recent homebuyers is growing and their spends are on par or higher than that of long-term owners. Here's a look at some more highlights from the report from Houzz.
What's Driving Most Renovations?
According to the survey of over 150,000 U.S. respondants, "pent-up demand" continues be the top driver of home renovations. Pent-up demand, which refers to homeowners renovating because they “wanted to do it all along,” has declined slightly since 2015 (from 59% to 56% in 2017). Home buying or selling remains the number two driver at 37%; renovations due to damage from natural disasters increased to 6% in 2017, from 4% in 2015.
What's Busting Renovation Budgets?
The top two reasons for homeowners going over budget involved the cost of products, materials or services. Some of the renovators surveyed made a conscious decision to purchase more expensive products or materials while others discovered products or services were more costly than expected. Other budget busters included decisions to change the project scope or design, unexpected project complexity, and surprise discoveries of construction-related issues.
How are Homeowners Paying for Renovations?
The majority of homeowners surveyed (85%) leverage cash/savings to fund renovations, with credit cards (most prevalant among first-time homebuyers) coming in second at 33%, and home equity loans third at 11%.
What are the Most Popular Rooms to Renovate?
While kitchens and guest bathrooms or "other" bathrooms held on to the number one and two spots, the master bathroom supplanted the living or family room as the third most popular room to renovate. The study also found that recent homebuyers are more likely than long-term homeowners to tackle kitchen renovations.
What Renovations Have the Highest ROI?
Four out of five homeowners responded that their kitchen and master bathroom upgrades had the highest return on investment even though improving the home design or functionality was a more important consideration than improving the home's resale value for the majority of homeowners surveyed.
How Much are Homeowners Spending on Kitchen Renovations?
2017 saw a 10% increase in the median spend (from $10,000 to $11,000), driven by an increased spend on larger kitchens (200 square feet or more). Major kitchen remodels – defined by the replacement of at least cabinets and appliances, – increased from $30,000 in 2016 to $33,000 in 2017. Smaller kitchen remodels (under 200 square feet) remained the same at $20,000.
Who's Hiring Professionals When Renovating?
Repeat homebuyers are the most likely renovators to hire a pro at 94%, with long-term howners coming in second at 87%, and first-time homebuyers slighly behind at 84%. Demand for electricians and air conditioning and heating specialists grew most significantly year over year. Design related pro hiring, however, compares at only 15% in 2017, down from 17% in 2015 and 2016.
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Featured Photo by chuttersnap on Unsplash.