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SYDNEY, 28 September 2021 – Home renovation spend has grown five percent in the last year to a median $21,000, according to the 2021 Houzz & Home survey of more than 2,000 Australian respondents. Higher budget projects (with the top 10 percent of project spend) reached $150,000 or more in 2020. Investment in kitchen projects, the most popular among renovating homeowners, jumped 33 percent to $20,000 in 2020 compared with $15,000 in 2019. The study also found that the busy renovation market will continue through 2021, with 48 percent of homeowners planning to renovate this year.
“While the pandemic caused initial concern for the residential renovation industry, many homeowners finally had the time and financial means to move forward with long awaited projects in the past year,” said Tony Been, Managing Director of ANZ at Houzz. “This pent up demand, along with long-standing market fundamentals empower homeowners to continue investing in their current homes.”
With homeowners home-bound due to the pandemic, the share who reported that they had wanted to pursue a home renovation all along and finally had the time increased by four percentage points in 2020 (41 percent versus 37 percent in 2018), and remains the top renovation trigger. Wanting to do it all along and finally having the financial means also rose as reported by 35 percent of homeowners compared with 34 percent in 2018. Over a quarter of homeowners claimed to have renovated instead of moving to find a home that fit their needs because it was the more affordable option (29 percent). Renovating to adapt to recent changes in lifestyle also increased in 2020 from 2019 (20 percent versus 19 percent in 2019).
While cash remains the leading form of payment for home renovations (81 percent), the share of homeowners opting to finance their projects with credit cards fell significantly to 13 percent (from 20 percent in 2019). Millennials are more likely to use credit cards than older generations, who can supplement their savings with cash from previous home sales.
Millennials Step Up Spend
Median renovation spend among Millennials (ages 25-39) jumped 83 percent in 2020 compared with 2019 ($22,000 versus $12,000), surpassing Gen Xers (ages 40-54) who historically reflected higher median spend ($20,000). That said, the top 10 percent of project spend for Gen Xers surpassed Millennials ($200,000 versus $79,000). Median spend among Baby Boomers (ages 55-74) was $22,600.
Major Changes to the Kitchen
Homeowners are making major changes to their kitchens, with more than half reporting they had changed the layout of the kitchen (54 percent) and two in five homeowners upgraded their plumbing, electrical or HVAC systems (40 percent). One third of homeowners reframed, moved or added walls, and two in five increased the size of the kitchen during renovations (33 and 43 percent, respectively). Nearly half of homeowners replaced all appliances in their newly renovated kitchens (45 percent). Other improvements made to the kitchen include new benchtops, taps and fixtures, cabinets, splashbacks and sinks (78, 77, 75, 75, 74 percent, respectively).
Outdoor Projects Heat Up
While interior room renovations remain the most common projects (72 percent), outdoor areas are addressed by nearly three in five homeowners (59 percent). One third of homeowners pursued their projects due to an outdated or undesirable design or style (33 percent). Other challenges addressed by homeowners include outdoor spaces that were poorly laid out or difficult to work, play or entertain in (18 and 16 percent, respectively). Improvements to outdoor spaces were directed towards the grounds, with beds or borders seeing a significant seven percentage point increase among renovating homeowners in 2020 (34 percent versus 27 percent in 2019). Exterior upgrades, such as fences, patios or terraces and decks, also increased in popularity in 2020 (20, 12 and 20 percent, respectively). One in ten renovating homeowners upgraded their outdoor shed or workshop (10 percent).
Homeowners Hire More Than One Pro for Help
Nine in ten homeowners hired professional help for their renovations in 2020 (91 percent). Among professionals hired, electricians, plumbers, carpenters and painters were the most common (66, 48, 35 and 34 percent).
The Houzz & Home Survey
The annual Houzz & Home survey is the largest survey of residential renovation, building and decorating activity published. The survey covers a wide range of renovation projects in 2020, from interior remodels 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 nearly 2,000 respondents in Australia alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.
The Houzz & Home Australia Survey was sent to registered users of Houzz and fielded April-May 2021.
Houzz has over 23 million photos of professionally designed interiors and exteriors, including completed kitchen and bathroom projects, and more than 2.7 million active home renovation and design professionals including architects, interior designers, specialty contractors and design-construction firms.
About Houzz
Houzz is the leading platform for home renovation and design, providing people with everything they need to improve their homes from start to finish. On Houzz, people can find design inspiration, research and hire home professionals and get advice for their projects. For home professionals, Houzz Pro (houzz.com.au/pro) provides an all-in-one software solution that empowers industry pros to stand out, manage their lead pipeline and win clients. The Houzz community is made up of millions of homeowners, home design enthusiasts and home improvement professionals around the world. Houzz is available on the web and as a top-rated mobile app. Headquartered in Palo Alto, California, Houzz also has international offices in London, Berlin, Sydney, Moscow, Tel Aviv and Tokyo. Houzz is a registered trademark of Houzz Inc. worldwide. For more information, visit houzz.com.au.