Palo Alto, Calif. — Home improvement activity and spending has 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 owners renovated their home in 2021, compared to 53% in 2020 and 54% in 2019 and 2018.
More significant is the change in median spending: a 20% increase to $18,000, an increase that follows a 15% increase last year. The Houzz Report attributes this growth to owners with higher budget projects (top 10% spend) increasing their investment from $85,000 in 2020 to $100,000 in 2021.
Renovation activity continues this year, with 55% of owners planning to renovate and 46% to decorate. And for the first time since 2018, projected homeowner spending rose to $15,000 for 2022, from $10,000 in the past three years.
Additionally, homeowners with higher budget renovations plan to spend $75,000 on projects in 2022, up from $60,000 in 2021.
“Market fundamentals, including a limited and aging housing stock, continue to propel the home improvement market,” said Marine Sargsyan, economist at Houzz. “Homeowners are clearly committed to investing in their homes despite rising product and material costs driven by supply chain disruptions and are exploring various sources of financing.”
Recent buyers, who make up 10% of those doing renovations in 2021, spent nearly double the national median at $30,000. Those with higher budget projects invested an average of $175,000 in their renovation projects, likely due to a larger scope of projects (average of three to four rooms) and the integration of home systems, such as electricity and plumbing.
Other report highlights:
- Application for professionals: More homeowners (89%) sought professional help with their renovations in 2021 than the previous year (87%). And construction and design professionals were hired by a greater proportion of owners in 2021 (38% and 20%, respectively) compared to the previous year.
Investment increases in interior parts: Median spending increased for all interior room renovations last year. Kitchens remain the most popular interior room to upgrade and the room that commands the most spending, with a 25% increase in spending compared to 2020. Other rooms have also caught the eye, with significant increases in expenses for guest bathrooms (38%), laundry rooms. (33%), living rooms (33%) and guest rooms (28%).
- Securing the land: Remodeling homeowners spent a quarter more on home security systems last year, nearly three times as popular as they were in 2015.
About the survey
The annual Houzz & Home survey covers a wide range of renovation projects in 2021, from interior renovations and additions to home systems, to exterior improvements and exterior projects. Data collected includes historical and planned spending, professional involvement, motivations and challenges behind construction, renovation and decoration projects, as well as planned activities for 2022. The 2022 study includes nearly 70,000 respondents in the United States only, providing insight into the activity of the millions of users of the Houzz site and mobile apps.
The Houzz & Home survey was sent to registered Houzz users and was conducted from February to March 2022. The full report is available on the Houzz website.