Home renovation is a significant aspect of homeownership, and it’s always interesting to see how trends evolve over time. In 2022, more homeowners than ever before were focused on long-term living in their homes rather than selling in the near future. Renovation activity was in full swing, and kitchens and bathrooms were the star attractions. That trend continues for 2023 with a few surprising twists.
Staying Put: A Long-Term Approach
Last year, a whopping 61% of homeowners revealed their intention to stay in their homes for 11 years or more following their renovations. This marks a significant shift as the share of homeowners planning to sell their homes soon dropped by half since 2018, with only 6% of homeowners considering this option, compared to 12% in 2018.
Renovation Activity Is Boomingt
Similar to last year, homeowners are actively engaged in improving their living spaces, with nearly 3 in 5 undertaking remodeling (58%) or decorating (57%) projects. Additionally, nearly half of homeowners focused on necessary repairs. The median expenditure for home renovations nationwide last year was $22,000, while those in the top 10% of spend invested a considerable $140,000 or more. The momentum continues with over 55% of homeowners planning renovation projects in the near future.
Kitchens and Bathrooms Take Center Stage
When it comes to renovation, interior spaces are the top choice for homeowners. Notably, homeowners tackled on average nearly three interior projects simultaneously. Kitchen and bathroom remodels remain the most popular projects. Kitchens and primary bathrooms also command the highest median spend.
Professionals Are in Demand
Since last year, homeowners have increasingly turned to construction professionals and designers for their renovation needs. While specialty service providers were the most frequently hired (46%), construction professionals, such as general contractors and kitchen or bathroom remodelers, were a close second at 44%. The percentage of homeowners relying on construction professionals grew by 6 points compared to the previous year, as did the share relying on design-related professionals like Lenton Company, which increased from 20% in 2021 to 26% in 2022.
Baby Boomers Lead the Way
The baby boomer generation continues to be at the forefront of renovation activity, with 6 in 10 homeowners belonging to this age group. They were followed by Gen Xers (27%) and Millennials (9%). Interestingly, Gen Xers surpassed baby boomers in terms of median spending for the first time last year.
Aging Homes Call for System Upgrades
As the median age of homes in the United States continues to increase, homeowners are increasingly focusing on improving their home systems. In 2022, nearly 3 in 10 homeowners opted for plumbing upgrades, while electrical and home automation upgrades were close behind. Electrical upgrades, in particular, gained traction increasing by 4 percentage points after remaining stable at 24% for two years. Among typical home system upgrades, cooling and heating systems commanded the highest median spends, and were undertaken by more than 1 in 5 renovating homeowners.
Overall, the trend continues for homeowners who demonstrate a clear preference for long-term living in their renovated spaces. Renovation activity remains robust, with kitchens and bathrooms taking center stage. The hiring of construction and design professionals also saw a significant uptick. As homes age, homeowners are addressing crucial system upgrades to ensure their living spaces remain safe and efficient. These trends offer insights into the evolving priorities and preferences of homeowners, as well as the booming industry of home renovation. What can Lenton Company’s design-build professionals do for your home? Give us a call at 661.273.9179 and let’s start a conversation.
Source: 2023 U.S. Houzz & Home Study: Renovation Trends