According to the seventh annual Houzz & Home Survey of nearly 150,000 respondents in the U.S., 2018 is on track to be another solid year for home renovations. While long-term owners drive the majority of home renovations, recent homebuyer share is slowly ticking up. Kitchens and bathrooms topped the list of interior remodels for both frequency and spend in 2017. Some examples of this spend increase between 2016 and 2017 include kitchens over 200 sq. ft. that went from $30,000 to $33,000, master bedroom spend that went from $1500 to $2,000, and median home office spend that increased from $1000 to $1,200.
"All of the evidence from our research points to 2018 likely being another robust year for the home improvement industry,” said Nino Sitchinava, Ph.D., Houzz principal economist. “Recent buyers and long-term homeowners alike are keen on investing in major projects. Kitchens and bathrooms continue to fuel spend, while exterior features and systems, such as home security and automation, are on the rise. Houston’s rebuilding activity has brought the city’s median renovation spend up to one of the highest in the nation, while coastal cities maintain nearly double the median national spend.”
Reasons for renovation are widespread. From design to improved functionality, from recovery from natural disaster to resale, the latter is an important consideration for over two-thirds of renovating homeowners. Some of the most frequent renovation projects are also the ones that are perceived to contribute the most to the home's resale value. Specifically, four in five renovating homeowners report that kitchens and master bathroom upgrades increased the value of their home, above and beyond any other renovation project.
2017 was a turning point for home security and automation adoption. Home security
installations were up 50 percent from 2015 to 2017, as were home automation installations, such as thermostats, electronics and lights. The largest gains in adoption of home security and home automation systems were among long-term owners who appear to be catching up to more tech-savvy recent buyers.
What this all means for service providers is that 9 in 10 homeowners hire a home professional for renovation needs. That said, repeat homebuyers are significantly more likely to hire a construction manager or a design-related professional, as compared to first-time buyers or long-term homeowners. And interestingly enough, when it comes to hiring, the study found that homeowners consider a very limited number of professionals. For example, homeowners seriously consider only three general contractors or builders and only two architects or designers for their renovation projects.
While DT has edited the press release for the blog, the full U.S. report is available here.
The annual Houzz & Home survey is the largest survey of residential remodeling, building and decorating activity published. The survey covers a wide range of renovation projects in 2017, 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 2018. The 2018 study includes nearly 150,000 respondents in the U.S. alone, providing insights into the home improvement activity of the more than 40 million monthly unique users of the Houzz site and mobile apps. The Houzz & Home Survey was sent to registered users of Houzz and fielded in March-April 2018.
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The interior designer featured is Kerry Fidler. He is based in Palm Beach County, FL and New York City and specializes in kitchen, bath, and whole home renovations