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SYDNEY, 12 SEPTEMBER 2018 – 2018 is on track to be another solid year for home renovations, with half of homeowners on Houzz Australia planning to renovate their home (57 per cent), according to the annual Houzz & Home Australia survey of more than 7200 respondents in Australia. Renovation activity and spend was strong in 2017, with over 50 per cent of homeowners renovating their homes, at a median spend of $25,000. Repeat homebuyers invest the most in home renovations at a median spend of $30,000, followed at a distance by long-term owners and first-time homebuyers ($22,000 and $15,000 median spend, respectively). *

Kitchens topped the list of interior updates for renovation frequency in 2017, with more than a quarter of renovating homeowners tackling kitchens (26 per cent), followed by living/family rooms, bedrooms, master bathrooms and laundries (24, 18, 18 and 17 per cent respectively). First-time and repeat homebuyers are more likely to take on kitchen renovations than long-term homeowners (38 and 31 per cent, respectively, versus 24 per cent of long-term homeowners) . Kitchens were also the most expensive room to renovate, with a median spend of $20,000 for a large kitchen (more than 10 square metres), followed by large master bathrooms (more than five square metres) at a median spend of $13,000.

"All of the evidence from our research points to 2018 likely being another robust year for the home improvement industry,” says Nino Sitchinava, Ph.D., Houzz principal economist. “Recent buyers and long-term homeowners alike are keen on investing in major projects like kitchens and bathrooms and they’re validated by the value these projects have brought to their homes."

While improving a home’s design or functionality are the top considerations during renovations (74 per cent each), increasing the home’s resale value is an important renovation consideration for nearly half of renovating homeowners (46 per cent).** In fact, eight in 10 homeowners believe their renovation had a positive impact on home value (80 per cent), and nearly half of homeowners believe that their home value has increased by at least the full amount of the project cost post-renovation (37 per cent).

Other top findings include:

• More Deliberate Planning and Budgeting: Over the past two years, homeowners have become more deliberate in planning and budgeting for renovations and were seven percent more likely to set a budget in 2017 than in 2015 (74 and 67 per cent, respectively).
• Plumbing and Electrical Top System Upgrades: Homeowners prioritized plumbing and electrical over any other system during renovations (32 and 31 per cent, respectively). First-time homebuyers are twice as likely to upgrade electrical systems during renovations as long-term homeowners (52 versus 25 per cent, respectively).
• Home Professionals in High Demand: Over nine in 10 renovating homeowners chose to hire a home professional for renovation needs (92 per cent). Repeat homebuyers are the most likely to seek professional assistance (94 per cent), followed by long-term homeowners and first-time homebuyers 89 and 88 per cent, respectively).

• First-time homebuyers refers to homeowners who purchased and renovated their homes in 2017 and did not previously own any other home.
• Repeat homebuyers refers to homeowners who purchased and renovated their homes in 2017 and previously owned another home.
• Long-term owners refers to homeowners who moved into their homes six or more years ago