More homeowners are renovating their homes and are also spending more money on home improvement projects, according to recent findings from Houzz, which surveyed 46,118 of its users, including 24,667 renovating U.S. homeowners, about their home renovations in 2022 and renovation plans for 2023.
As last year’s surge in renovation activities continues into 2023, here are some of the main renovation trends that have been seen across U.S. homeowners, according to Houzz.
Renovating for the Long Run
The survey found that more than three in five homeowners (61%) who completed a renovation in 2022 plan to stay in their home for 11 years or more. Additionally, there are fewer homeowners (6% this year compared to 12% in 2018) who are renovating their homes with a plan to sell it soon after, suggesting that homeowners are investing in long-term renovation projects that they intend to enjoy for many years to come.
Renovation Activity & Spending Continues
The study’s findings also saw an increase in renovation activity and spending. Nearly three in five homeowners remodeled or decorated in 2022 (58% and 57%, respectively), while nearly half made repairs (48%). Renovation activity is also continuing into 2023 with more than half of homeowners (55%) planning home improvement projects this year.
As more people take on renovation projects, they are also investing more money into their homes. According to the study, the median spend for home renovations in 2022 was $22,000, whereas the median for higher-budget updates reached $140,000 or more. In 2023, the anticipated median spend is $15,000 and $85,000 for higher-budget projects.
Kitchens & Bathrooms are Main Attractions
Interior spaces are the most popular areas to renovate, with homeowners tackling an average of nearly three interior projects at a time. Hence, interior room remodels had the highest frequency in 2022 compared to other home projects. Kitchen and bathroom remodels remain the top projects among interior renovations, as a larger share of homeowners upgraded these spaces in 2022 (28% and 25%, respectively) compared to 2021 (27% and 24%, respectively). Homeowners are also spending the most on kitchens and primary bathrooms, with a median spend of $20,000 and $13,500, respectively.
More Construction & Design Professionals
Though homeowners hired specialty service providers most frequently for their renovation projects in 2022 (46%), there was an increase in the share of homeowners who relied on construction professionals, like general contractors and home remodelers (44%), as well as design-related professionals (26%).
Baby Boomers Lead in Renovation Activity
When looking at renovation projects by generation, baby boomers lead in renovation activity as the largest group of renovating homeowners (59%) in 2022. Gen Xers follow at a distance at 27%, while Millennials make up 9% of renovating homeowners. That said, the Gen X generation surpassed Baby Boomers in the median renovation spend for the first time in 2022, reaching a median spend of $25,000 compared to the median spend of $24,000 for Baby Boomers.
Aging Homes Call for System Upgrades
While interior spaces are the most common focus for renovations, the survey found that homeowners are also focusing on home system improvements as the median age of homes in the U.S. continues to increase. Nearly three in 10 homeowners upgraded their plumbing in 2022 (29%), while 28% completed electrical projects and 25% focused on home automation projects. In addition to electrical upgrades becoming more common in 2022, more than one in five homeowners made upgrades to their cooling and heating systems in 2022, which were the two home systems with the highest median spends ($5,500 and $5,000, respectively).
Read the complete Houzz overview of U.S. renovation in 2022 and 2023 here.
