Home renovation projects are picking up, according to a recent study by Houzz Inc. In fact, nearly a quarter of all respondents (23%) say they will start a renovation project in the next 12 months, while 29 % say they are already renovating their home. This study was conducted in October 2022 and has nearly 4,000 respondents.
It seems that recent rate hikes and ongoing housing issues may have something to do with this trend. As new home production has slowed and many potential buyers have been shut out of the price of a new home, it seems the most reasonable option right now is for homeowners to focus on upgrading and perfecting their their current residences.
Sixty-seven percent (67%) of respondents say they would prefer to stay in their current home and improve it. Meanwhile, 55% say remodeling is either cheaper than buying a new home or a better overall investment.
“For many, conditions such as the limited choice of homes available and rising interest rates are pushing them to renovate and improve their current home, as the cost of moving into a home that meets their current needs has become so high,” says Marine Sargsyan, Houzz. personnel economist.
“Additionally, more than half of the owners we surveyed have no intention of selling or moving from their current residence in the next 20 years – or ever.”
Home professionals are therefore expected to play an important role in these upgrades over the coming year. Ninety-one percent (91%) of respondents considering undertaking a home improvement plan should have at least one professional to help with these reviews. These projects are also expected to start soon, with 58% planning to start in January 2023.
Houzz Report sees more homeowners retrofitting their home systems
Kitchens (33%) and bathrooms (37%) will continue to dominate homeowners’ attention; however, home exteriors and outdoor elements are not far behind. Windows and skylights are perhaps the most important to homeowners today (43%), but are followed by improvements to exterior doors (42%), porches and balconies (32%) and decks ( 31%) as items of interest in renovations.
Home systems also come under scrutiny among homeowners. Given America’s aging housing stock combined with a growing prevalence of more advanced and accessible home technologies, homeowners are looking to upgrade electrical (49%), plumbing (48%), heating (34% ) and safety (34%) during their renovation projects.
That’s not all optimism for owners, however. Many are aware that there will be significant remodeling challenges posed by the current economy, however, this seems like a headache they are prepared to endure. Among those planning to start a home improvement project, they expect supply chain issues (37%) and the ability to stay on budget (27%) to be major challenges.
Being able to find the right professional (35%) is also a top concern for homeowners, according to the report. Even for the 11% who want to start a project, 23% say they are waiting because they are still looking for the right professional to hire. Of this group, 82% also said they were waiting either because of inflation (54%) or supply chain issues (28%).
The 1% who have canceled their plans speak of similar problems, citing inflation and uncertainty as the main drivers behind the halt in renovations.