Reno Insights: Who Spent How Much on Their New Home?
Delve into the details of our annual Houzz & Home survey to see who is spending (and on what) in their home
It may not be a surprise – given the amount of time we have spent at home during the past 18 months, together with increased savings from not taking holidays – that home-renovation spending has grown this year. To be specific, the 2021 Houzz and Home survey of more than 2,000 Australian-based respondents found the amount spent on renovations rose five percent in the past year to a median of $21,000.
Who is spending?
The answer is that Millennials (those aged 25 to 39) are spending the most. Median renovation spend among Millennials leapt a huge 83 percent in 2020 compared with 2019 ($22,000 versus $12,000).
This spending surpassed Gen Xers (those aged 40 to 54), who historically had a higher median spend ($20,000).
That said, the top 10 percent of project spend for Gen Xers greatly outpaced Millennials with $200,000 compared to $79,000.
Median spend among Baby Boomers (those aged 55 to 74) was $22,600.
The answer is that Millennials (those aged 25 to 39) are spending the most. Median renovation spend among Millennials leapt a huge 83 percent in 2020 compared with 2019 ($22,000 versus $12,000).
This spending surpassed Gen Xers (those aged 40 to 54), who historically had a higher median spend ($20,000).
That said, the top 10 percent of project spend for Gen Xers greatly outpaced Millennials with $200,000 compared to $79,000.
Median spend among Baby Boomers (those aged 55 to 74) was $22,600.
What are they spending on?
The most popular room to renovate was the perennial favourite, the kitchen, with the money invested in this space jumping 33 percent to $20,000 in 2020 compared with $15,000 in 2019.
Browse more beautifully designed Australian kitchens
The most popular room to renovate was the perennial favourite, the kitchen, with the money invested in this space jumping 33 percent to $20,000 in 2020 compared with $15,000 in 2019.
Browse more beautifully designed Australian kitchens
Where do people find the money?
Cash remains the leading form of payment for home renovations (81 percent).
And, in line with increased savings, the share of homeowners opting to finance their projects with credit cards fell significantly to 13 percent (from 20 percent in 2019).
(However, Millennials are more likely to use credit cards than older generations, who are able to supplement their savings with cash from previous home sales).
Cash remains the leading form of payment for home renovations (81 percent).
And, in line with increased savings, the share of homeowners opting to finance their projects with credit cards fell significantly to 13 percent (from 20 percent in 2019).
(However, Millennials are more likely to use credit cards than older generations, who are able to supplement their savings with cash from previous home sales).
And in good news for pros…
The study also found that the busy renovation market will continue through 2021, with 48 percent of surveyed homeowners planning to renovate this year.
The study also found that the busy renovation market will continue through 2021, with 48 percent of surveyed homeowners planning to renovate this year.
About the Houzz & Home survey
The annual Houzz & Home survey is the largest published survey of residential renovation, building and decorating activity. It covered a wide range of renovation projects in 2020, from interior renovations and additions to home systems, exterior upgrades and outdoor projects. Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2021.
The 2021 study includes over 2,471 respondents in Australia alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.
The annual Houzz & Home survey is the largest published survey of residential renovation, building and decorating activity. It covered a wide range of renovation projects in 2020, from interior renovations and additions to home systems, exterior upgrades and outdoor projects. Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2021.
The 2021 study includes over 2,471 respondents in Australia alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.
Your turn
Have you renovated this year? If so, what has your experience been? Any wise words for other readers? Tell us in the Comments below, like this story, save the images, and join the conversation.
More
Read more about the survey here.
Have you renovated this year? If so, what has your experience been? Any wise words for other readers? Tell us in the Comments below, like this story, save the images, and join the conversation.
More
Read more about the survey here.
The survey found that higher-budget projects (with the top 10 percent of project spend) reached $150,000 or more in 2020.
Keen to renovate your home? Find your team of professionals here