Houzz opens door to wealth of survey data
Homeowners are investing larger budgets into their kitchen and bathroom renovation projects, according to the fifth annual Houzz & Home survey of more than 120,000 respondents in the U.S.
The average spend on kitchen and master bath remodeling projects in 2015 increased by 12% year over year. Consistent with the last five years, kitchens remain the most popular interior remodeling project (31%), followed by master/non-master bathrooms (22% and 26%, respectively) and living/family rooms (23%).
Renovating homeowners also tackled a more diverse set of projects in 2015 than in 2014, with a greater emphasis on upgrades to interior spaces (72% versus 69%) and exterior features like windows and roofing (56% versus 53%).
“2015 was another strong year for the home renovation market, with homeowners continuing to increase investment in their homes," said Nino Sitchinava, principal economist at Palo Alto, California-based Houzz.
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When it comes to the motivations behind renovations, finally having the time was the top trigger for home renovation projects in 2015 (38%), ahead of finally having the financial means (37%), the top trigger for 2014 projects. Homeowners are renovating instead of buying a “perfect” home largely due to their desire to stay in their current home or lot (49%) or remain in their current neighborhood (31%). Financial considerations such as renovation being a more affordable option or providing a better return on investment (28% each) trail behind.
Recent home buyers were clearly identified as a key driver of renovation activity.
Over a quarter of renovations are driven by recent home purchases (26%), and more than one in ten renovators purchased a home in 2015 (12%). Renovators of a recently purchased home invest more in their projects than other homeowners ($66,600 versus $59,800). They also embark on larger scope projects, and are nearly three times as likely to renovate all of their interior spaces than the average renovator (14% versus 5%). When considering priorities, kitchen projects top the list for these homeowners (41% versus 31%) for the average renovating homeowner) along with other major projects to improve the comfort of their home such as home automation (33% versus 19%). People tend to buy a home with the intention of renovating versus seeking an already “perfect” home, with the goals of creating a personalized space (34%), capitalizing on the affordability of renovating versus buying a home (32%), or maximizing their return on investment (32%).
Those preparing to sell their home (13% of renovators) are also investing in renovations, focusing on exterior projects that enhance curb appeal. Popular projects include upgrades to exterior paint, roofing, exterior doors and decks (27%, 20%, 19%, and 17%, respectively). Homeowners preparing their home for sale spend just over half the amount that recent home buyers invest in their projects ($36,300 versus $66,600), prioritizing immediate return on investment and rapid sale.
“While the majority of renovations are spurred by homeowners’ desire to upgrade a home they have lived in for some time, recent home purchases are also an important driver of home renovation activity," Sitchinava said. "Recent home buyers tend to do more, spend more, and are more likely to hire professionals to help with their renovation projects than other homeowners. As the churn in the housing market picks up in the near future, the home renovation market should see meaningful growth.”
The Houzz & Home Survey was sent to registered users of Houzz and fielded in March-June 2016. The Farnsworth Group, an independent market research firm, conducted the survey.