Are you renovating your home or planning a renovation? If so, you’re not alone. According to Houzz, a platform for home remodeling and design, median spending has increased 60% from 2020 ($15,000) to 2023 ($24,000).
In their 2024 Houzz & Home Study of over 30,000 users, over half of homeowners taking on a renovation project spent $25,000 or more in 2023, which is up from 37% in 2020. While spending is going up, renovation activity has slightly decreased by two percentage points to 56% of owners renovating their home.
These are a few of the highlighted findings from the study:
Gen X Spends the Most
For the second year in a row, this generation has spent more on home renovations than other age groups. Their median spend was $25,000 compared to $24,000 by the Baby Boomers. While they may not spend as much, the Baby Boomers are driving the majority of renovation traffic with 56% of survey results.
“Looking ahead, with over half of homeowners planning renovations, it’s evident that the need to update limited and aging housing stock continues to fuel strong demand for home improvements,” says Marine Sargsyan, Houzz staff economist.
Trusting the Professionals
As many renovators choose to hire a professional to tackle the work (more than 9 in 10 homeowners), those hiring for specialty projects like electrical, plumbing and painting has slightly increased (up one percentage point to 47% in 2023).
If you’re looking into being your own general contractor, you wouldn’t be alone. Homeowners hiring construction professionals decreased to 42% in 2023 (down 2 percentage points from 2022).
Kitchens and Bathrooms are Priority
Often referred to as the heart of the home, it’s no surprise kitchens are the top renovated interior room at 29%. Guest bathrooms and primary bathrooms are closely behind (27% and 25%, respectively). More money is being allocated to these spaces well: kitchen median spending reached $24,000 (up 20%) and primary bathroom median spending reached $15,000 (up 11%).
Budgets Set… and Exceeded
More homeowners are setting budgets for their home renovation projects in 2023 than before (76% compared to 73% in 2021). While proper planning is in place, nearly 2 in 5 exceeded their budgets (39%), citing unforeseen costs, expensive products/materials or increased project complexity.
Planning Time Increases
Figuring it out as you go isn’t applicable here: owners dedicated almost twice as much time to the planning phase of their project compared to the actual building phase. In 2023, kitchen planning averaged 9.6 months while building was 5.1 months. Living rooms followed closely behind with 8.1 planning months and 4.1 building months.
Ways to Pay
Cash from savings is still the most used payment method for renovation projects at 83%, followed distantly by credit cards at 37%. However, credit card usage is up from 2022, increasing 9 percentage points. When it comes to big budget projects, owners also used home loans and cash from home sales for funding (23% and 21%, respectively).
Decreasing Product Purchases
Paint is still the leading product purchase for projects, coming in at 64% for 2023. However, that number is down 4 percentage points from the previous year. Major kitchen appliance purchases also dropped by the same amount, resulting in only 32% of owners buying them. Smaller purchases like décor also saw a decrease, with the top categories of small furniture, large furniture and storage and organization solutions dropping by 14, 13 and 12 percentage points, respectively.
For more detailed insights, you can view the full report here.
