New data reveals home renovation projects are surging
Amid ongoing economic uncertainty, many U.S. homeowners are investing in their current properties rather than entering the market for a new home.
New data from Nationwide shows that many are spending their dollars on home renovations, repairs and other upgrades. In fact, Nationwide's most recent Homeowners Survey reveals that 51 percent of homeowners say they have completed a "major home renovation project" within the past two years.
Empty nesters are spending big on renovations
While the share of empty nesters undertaking home renovations is similar to that of general U.S. homeowners, empty nesters are spending significantly more on these projects. The Nationwide survey showed that they spent an average of $8,670 on home renovations compared to $5,128 for the typical homeowner. Empty nesters are also investing in more large-scale projects and easily outspending general homeowners on kitchen remodels and full home renovations.
A comparison of renovation spending by project type
- Kitchen remodels: U.S. Homeowners - $9,702 average; Empty Nesters - $18,672 average
- Full home renovations: U.S. Homeowners - $36,900 average; Empty Nesters - $90,000 average
- Window replacements: U.S. Homeowners - $4,917 average; Empty Nesters - $15,375 average
"A complex housing market has many homeowners reconsidering plans to sell. For empty nesters, that means upgrading their current homes to meet their needs in the next life stage, rather than relocating," said Casey Kempton, Nationwide's president of P&C personal lines. "Unfortunately, our research shows that homeowners often overlook necessary policy adjustments after significant renovations, potentially leaving them underinsured in the event of a catastrophe. Every homeowner should review their home insurance coverage with their independent insurance agent regularly to avoid potential gaps."
The survey found that 55 percent of respondents who completed major renovations in the past two years have not adjusted their insurance policies, which Nationwide says leaves homeowners at risk of being underinsured.
Homeowners confident in their DIY abilities
Three in four homeowners cite high costs as a key challenge when seeking contractors for home maintenance work. Less than half of homeowners found it easy to find reputable contractors, too.
As a result, more homeowners are attempting to tackle significant DIY projects themselves. The survey revealed that while most homeowners still prefer professional help for major renovations, 38 percent have taken on projects typically reserved for experts, such as kitchen remodels or even home additions.
Top DIY projects among homeowners:
- Basement renovations: 43 percent
- Front door replacements: 41 percent
- Bathroom remodels: 39 percent
- Kitchen remodel: 38 percent
- Full-home remodel / "gut" renovation: 36 percent
- Home addition (e.g., additional rooms, separate garage, etc.): 35 percent
"Although DIY can be an empowering choice, it also introduces risks that may compromise home safety and insurability. Homeowners may not realize that taking on complex projects themselves could impact their insurance," Kempton noted. "While DIY projects might save on upfront costs, mistakes could lead to safety issues and unexpected expenses. We always recommend consulting with an insurance agent before diving into any major DIY renovation to ensure that all potential risks are covered."
While almost all homeowners say they rely on the internet for DIY advice, there's a generational split in how they gather information. Empty nesters are less likely to use social media for project tips—38 percent of empty nesters compared to 48 percent of U.S. homeowners overall—relying more on other online resources.
