Whether you’re turning your guest room into an office or listening to every trial and error of your mother-in-law’s kitchen renovation, these days it feels like everyone is renovating. But according to the statistics, it checks out.
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According to the recently released Houzz & Home US 2022 Renovation Trends Survey, home renovation activity and spending are at the highest reported rates since 2018. Here’s a look at the details behind the survey, from skyrocketing prices to about on your home how everyone pays for it.
The Houzz survey had some interesting findings about the state of renovations, which increased in 2021. More than half of homeowners (55 percent) renovated last year, up from 53 percent in 2020 and 54 percent in both 2019 and 2018. But it’s not not just the amount of renovations that are going up, but the money being spent on them. Homeowners spent 20 percent more on renovations, with an average spend in 2021 of $18,000. Compared to $15,000 the year before, that’s a pretty significant increase. Of course, when you consider how difficult it is to get the supplies and labor necessary to complete a renovation these days, this price increase becomes understandable.
While 2021 was a boom year for renovations, 2022 is set to be even bigger. More than half of homeowners (55 percent) who participated in the survey said they plan to renovate in 2022. Also, nearly half (46 percent) said they plan to decorate. This turned out to be the first time since 2018 that homeowners’ planned spending has increased, with the median jumping from $10,000 over the past three years to $15,000. When you think about your bank account, a 50 percent jump is a pretty big jump.
In 2021, the kitchen remained the most popular interior space to upgrade, but it also proved to be the most expensive. It saw a 25 percent increase in investment, jumping to $15,000 in 2021 from $12,000 in 2020. Of course, that increase was seen throughout the house, with dramatic increases in renovations to guest bathrooms, laundry rooms, living rooms and guest rooms. Another significant increase came in the amount people spent on security systems. Renovating homeowners spent 25 percent more on home security systems in 2021 than in 2020. The survey found that outdoor security systems are now three times more popular than they were in 2015. They are also the second most commonly installed outdoor upgrade behind lighting.
An interesting transition is the way people pay for these renovations. After all, not everyone has the extra money to finance a kitchen renovation. So it’s no wonder that the percentage of homeowners who rely on cash from savings to fund their renovation projects fell 7 points in 2021, falling to 76 percent. For the previous 3 years, it held strong at 83 percent. Credit cards came into play strongly this year, with the share of homeowners financing renovations with credit increasing by 6 points to 35 percent.
Houzz conducted their 160-question survey of 67,554 users between February 27 and March 27, 2022.