Soaring Costs Not Slowing Home Renovations: ‘Homeowners Commit to Investing,’ Houzz Survey Finds
People have been busy improving their homes during the pandemic, despite higher costs and supply shortages, and many will continue to make improvements, according to the Houzz & Home 2022 study published April 27.
Home remodeling and decorating hit the highest rates reported since 2018, according to Houzz’s 11th annual survey.
And homeowners in the study say they plan to spend $15,000 in 2022 to fix their kitchen, roof or plumbing, among other popular changes, up from $10,000 in the past three years, a jump 50% in the median, according to the study.
Additionally, the top 10% of homeowners plan to spend $75,000 on big projects in 2022, up from $60,000 in 2021, according to responses from nearly 70,000 U.S. users of the website. home renovation and design from Houzz.
On average, homeowners customizing a recently purchased home have made changes to three to four rooms, as well as installing new windows and doors and repairing electrical and other home systems, according to survey responses provided. between February and March 2022.
More homeowners also upgraded their cooling and heating systems in 2021 than in 2020, and spent 25% more on home security systems and 20% more on water heaters.
“Renovation activity remains strong due to market fundamentals, including limited and aging housing stock, despite rising product and material costs due to supply chain disruptions,” said Marine Sargsyan. , an economist at Houzz. “Homeowners are clearly committed to investing in their homes.”
The 2022 Houzz & Home study also revealed:
Motivation : The most common reason given by homeowners for implementing long-desired improvements was that they finally had the time and the money.
Other reasons cited by respondents were that they had to adapt to recent lifestyle changes or repair or replace damaged materials. People who said they were sprucing up their home to sell it fell from 10% in 2020 to 9% in 2021.
The creation of outdoor living spaces peaked in 2020, with the start of stay-at-home orders during the coronavirus pandemic; 57% of respondents then put effort and money into their construction sites, while in 2021 the percentage fell to 54%.
People who moved into their homes one to five years ago improved their outdoor spaces at a higher rate than long-time or recent homeowners. On average, this group added two features such as a patio, gazebo, fence, or irrigation system, according to the study.
A greater proportion of homeowners updated interior rooms (70%), home systems (63%) and home exteriors (58%) in 2021, the survey found.
Pay for upgrades: Savings and credit cards remain the main forms of payment for home renovations. People who bought their homes in the past five years were more likely to rely on cash from a previous home sale, while long-term homeowners were more likely to use secured home loans in 2021.
Renovation period: Homeowners spent an average of nine months or more on a renovation project in 2021. Across all types of interior rooms, the planning phase took almost twice as long as the construction phase, according to the study.
The kitchen renovations required the longest construction period, almost five months, while the construction phase for the bathrooms and other interior rooms was one month shorter on average.
Budgets: Nearly two-fifths of homeowners surveyed met or exceeded budget when renovating in 2021. However, almost the same share (34%) went over budget. That said, 27% of renovation homeowners didn’t even have an initial budget for their 2021 renovation, according to Houzz.
Recent buyers, who were more likely to go over budget, found that expenses were higher because products or services were more expensive than expected, projects were more complex than expected, and unexpected issues were discovered to be resolved. according to the study.
Recruitment professionals: Slightly more homeowners surveyed hired professionals for their renovations in 2021 than the previous year; 89% versus 87%. Recent buyers who tackle more projects are the most likely to hire professional help.
Nearly half of surveyed remodelers hired professionals for electrical, plumbing and other projects. Median spending on electrical upgrades in 2021 is up 50% from 2020, according to Houzz.
Upgraded rooms: In 2021, homeowners in the study spent 25% more money remodeling a kitchen compared to 2020. The biggest increase, however, was in guest bathrooms (38%), laundry rooms ( 33%), living rooms (33%) and guest bedrooms. rooms (28%), says Houzz.
For master bathroom renovations, the median spend of $9,000 in 2021 is over $8,000 in 2020, 2019 and 2018, and over $7,000 in 2017.
Exterior improvements: Overall, homeowners spent 11% more on new roofs in 2021 compared to 2020, according to the study. Median spending increased for all exterior building upgrades in 2021, especially exterior doors (50%) and gutters or downspouts (40%).
Security systems: Outdoor security systems are almost three times more popular today than they were in 2015. Some homeowners have purchased wireless doorbell cameras and outdoor and indoor security cameras, and opted for products that can be monitored or controlled remotely, depending on the survey.
— Edited by Janet Eastman | 503-294-4072