The 2022 U.S. Houzz & Home Survey released earlier this summer. According to Houzz, the data reveals that not only did renovation budgets grow in 2021, but project scopes also expanded. For the purpose of their study, recent homeowners are defined as those who have not yet moved into their home or moved in less than a year ago. Short-term owners moved into their home one to five years ago. Long-term homeowners moved into their home six or more years ago.
Renovation Activity & Spend Hit 4-Year High
Home renovation activity and spending are at the highest rates reported since 2018. More than half of homeowners (55%) renovated in 2021, up from 53% in 2020 and 54% in both 2019 and 2018. Following 15% growth in median renovation spend in 2020, homeowners reported an additional 20% jump in 2021 median spend, which now stands at $18,000.
Planned Renovation Spending Increases Year Over Year
More than half of homeowners (55%) plan to renovate in 2022, and nearly half (46%) plan to decorate. For the first time since 2018, homeowners’ planned spending has increased. The median has been $10,000 for the past three years and is now $15,000, a 50% jump.
Recent Homebuyers Spend Double the National Median Spend
Recent homebuyers, who account for 10% of renovating homeowners, spent nearly double the median ($30,000) in 2021, surpassing the median spend for short-term and long-term homeowners ($19,000 and $15,000, respectively). Recent homebuyers with higher-budget projects (the top 10% of spend) invested $175,000, compared with $100,000 for short-term homeowners and $90,000 for long-term homeowners. This higher spending limit potentially can be attributed to the number of projects recent homebuyers undertake at a single time. They are averaging three to four rooms, as well as home systems such as electrical and plumbing.
Investment in Interior Rooms Rises
The median spending increased for all interior room renovations in 2021. The kitchen, which remains the most popular interior room to be upgraded and is the room with the highest spend, saw an increase in investment of 25% ($15,000 in 2021 versus $12,000 in 2020). Interior rooms with the most dramatic spend increase are guest bathrooms (38%), laundry rooms (33%), living rooms (33%) and guest bedrooms (28%).
Other findings include homeowners exploring alternative funding sources – use of cash declined 7 points while financing with credit cards increased 6 points. Another area of investment increase was on outdoor security system upgrades.