Updated: Jun 29, 2018
The renovation market is going strong, with both first-time and repeat home buyers investing more in their homes. Spending is strong- annual spending on improvements and repairs is expected to exceed $340 billion by early 2019.
A recent survey by Houzz, a leading home improvement website, analyzed answers from 146,486 respondents across the U.S. The results reveal some interesting information about the home improvement industry.
65% of people are decorating
58% of people are renovating
52% of people are doing repairs.
Driving the spending are homeowners who have lived in their homes for six years or more. 74% of renovating owners are married or in a civil union and 37% have children living with them. Most renovations (88%) take place in single-family detached homes; houses built between 1961 and 2000 account for 53% of homes undergoing renovations.
Another recent survey by Home Advisor noted that homeowners are staying put (80%) and half of survey respondents are considering a remodel. High prices, low inventory and increasing mortgage rates are convincing people to renovate.
While the baby boomer generation is still the top spenders in home improvement, millennials are quickly catching up. Millennials are in the generation most likely to remodel and are twice as likely to complete kitchen and bath renovation projects. In the past 12 months, millennials completed 42% more projects than baby boomers and 18% more projects than Gen Xers.
The main reason for these improvements? Improved aesthetics top the list, followed by better comfort and adding value to the home.
What are people spending on home improvement projects?
$15,000 on average, but the top 10% shelled out $85,000 or more in 2017!
The best news for showroom owners? Topping the list of rooms to renovate are the kitchen, guest bathroom and master bathroom. The average spend for kitchen renovations increased 10% in 2017, and 4 in 5 owners believe that kitchen and bath improvements increased the value of their homes more than improvements in other areas of the house.
Find more on our blog: Keeping Up with the Kitchen and Bath Industry
People are planning
While people are investing more in their homes, it is important to note that buyers are being much more careful about how much they spend and are planning down to the detail.
77% of homeowners set a budget in 2017.
Showroom owners and designers can help clients out with organization and making sure the project stays on budget.
You can also help by limiting delay times and supply issues; the survey noted that homeowners are experiencing difficulties finding contractors and getting projects done on time.
The survey also showed that homeowners are more likely to hire professionals- 88% hired a pro in 2017, rather than taking on the project themselves. Among those who hired professionals, repeat home buyers were more likely to turn to a pro than first-time or long-time homeowners.
Cash or card?
85% of homeowners use cash and savings to fund renovations; 33% use credit cards and 11% use secured home loans. First-time homeowners are more likely to use credit cards to finance home improvement projects.
Top spenders are found in East and West Coast cities like San Jose, San Francisco, Los Angeles, Houston, Miami and New York City, with average spends of $20,000- $30,000.