December 4, 2023

Home renovation activity and spend hits four-year high | Houzz survey

PALO ALTO, Calif. — Home renovation activity and spend have reached the highest rates reported…

PALO ALTO, Calif. — Home renovation activity and spend have reached the highest rates reported since 2018, according to the 11th annual Houzz & Home survey of nearly 70,000 U.S. respondents.

Some 55% of homeowners renovated their homes in 2021, up from 53% in 2020 and 54% in both 2019 and 2018.

More significant is the change in median spend: up 20% to $18,000, an increase that comes on the heels of a 15% increase last year. The Houzz report attributes this growth the fact that homeowners with higher budget projects (the top 10% of spend) increased their investment from $85,000 in 2020 to $100,000 in 2021.

The renovation activity continues this year, with 55% of homeowners planning to renovate and 46% planning to decorate. And for the first time since 2018, homeowners’ planned spend has increased to $15,000 for 2022 as compared with $10,000 for the past three years.

Additionally, homeowners with higher-budget renovations are planning to spend $75,000 on projects in 2022, up from $60,000 in 2021.

“Market fundamentals, including limited and aging housing stock, continue to propel the home renovation market,” said Marine Sargsyan, Houzz staff economist. “Homeowners are clearly committed to investing in their homes despite heightened product and material costs driven by supply chain disruptions and are exploring diverse funding sources.”

Recent homebuyers, comprising 10% of those doing renovations in 2021, spent nearly double the national median at $30,000. Those with higher budget projects invested a median of $175,000 in their renovation projects, most likely due to a larger scope of projects (averaging three to four rooms) and incorporating home systems, such as electrical and plumbing.

Other report highlights:

  • Demand for professionals: More homeowners (89%) sought help from professionals for their renovations in 2021 than in the year prior (87%). And both construction and design-related professionals were hired by a larger share of homeowners in 2021 (38% and 20%, respectively) compared with the previous year.
  • Alexandra Crafton © Houzz

    Alexandra Crafton © Houzz

    Investment rises in interior rooms: Median spend increased across all interior room renovations last year. Kitchens remain the most popular interior room to be upgraded and the room that commands the highest spend, with a 25% increase in spend over 2020. Other rooms got attention as well, with significant spend increases for guest bathrooms (38%), laundry rooms (33%), living rooms (33%) and guest bedrooms (28%).

  • Securing the grounds: Renovating homeowners spent a quarter more on home security systems last year, nearly three times more popular than they were in 2015.

About the survey

The annual Houzz & Home survey covers a wide range of renovation projects in 2021, from interior remodels and additions to home systems, exterior upgrades and outdoor projects. Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2022. The 2022 study includes nearly 70,000 respondents in the U.S. alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.

The Houzz & Home Survey was sent to registered users of Houzz and fielded February through March 2022. The full report is available on the Houzz website.

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