Significantly more U.S. homeowners are moving forward with renovation projects compared to this time last year, according to the second annual Houzz & Home survey that garnered more than 100,000 responses from the Houzz community of 14 million monthly unique users.
A majority of the homeowners surveyed also believe now is a good time to remodel (53 percent), and 58 percent of those planning projects in the next two years will hire professional help. The study also found that three-quarters of homeowners believe now is a good time to buy a home. Together with last week’s Commerce Department report showing the rate of single-family home construction at its highest level in four and a half years, the results of this study point to a strengthening economy, housing and renovation market.
The 2013 Houzz & Home survey is the largest survey of remodeling and decorating activity ever conducted, covering historical and planned projects, the motivations behind these projects and the impact of the economy on home building, renovation and decorating plans among Houzz users across the United States and around the world. The study yielded detailed data at the national, regional and metropolitan area level, which Houzz used to examine regional differences in priorities and spending.
The number of homeowners who say they will delay their projects because of the economy has dropped to 45 percent from 52 percent last year, and homeowners are more likely to cut back in other areas, such as vacations and other big ticket purchases, rather than delay or decrease budgets for their home plans. While improving the look and feel of the space is still the key driver for recently completed projects (83 percent), the number of homeowners who remodeled to increase their home value has increased to 54 percent from 47 percent in 2012.
Bathrooms and kitchens top America’s renovation project list again this year, with 28 percent of respondents planning a bathroom remodel or addition, and 23 percent planning a kitchen remodel or addition in the next two years. In terms of dollars spent, kitchens command the lion’s share. During the past five years, nearly four in 10 home-improvement dollars have gone into kitchens, and survey data indicates future spend is likely to follow the same trend.
During the past five years, homeowners on average spent $28,030 to remodel their kitchens, however spending varies widely at different budget levels. Homeowners spent an average of $54,942 nationwide for a high-end kitchen, $22,390 for a mid-range kitchen and $7,133 for a lower-budget kitchen.
The study also found homeowners renovating at the higher-end were more likely to go over budget than those doing more modest renovations, though a significant number reported going over budget at all project levels. Fifty-six percent of those doing a high-end renovation, 42 percent of those who did a mid-range renovation and 31 percent of those whose renovation was lower-budget also spent more than expected on their projects.
Other Key U.S. Findings:
- A majority of the homeowners surveyed who are planning to complete a project in the next two years will hire a general contractor (58 percent), and a third a kitchen/bath (36 percent) or carpet/flooring professional (34 percent). Twenty-three percent plan to hire architects and 22 percent plan to hire interior designers.
- When it comes to hiring a professional for their project, 67 percent of homeowners surveyed rated a “personality I can work with” as a 5 (very important) on a 5-point scale.
- 34 percent of U.S. homeowners cited making their home more energy efficient as a key driver for completing their most recent project.
The Houzz & Home Survey was emailed to registered users of the Houzz website between January and February 2013. Edge Research conducted the survey.
Download the full report here.
