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Homeowners are renovating their homes for the long run, according to the annual Australia Houzz & Home Study of more than 1,500 respondents in Australia. As the leading home renovation and design platform, including the all-in-one software solution for industry professionals, Houzz, found that more than 3 in 5 homeowners state that they plan to stay in their homes for 11 years or more following a 2022 renovation (61%).
Almost half of the surveyed homeowners renovated their homes in 2022 (48%) and 2 in 5 decorated or furnished (43%). The median spend* for home renovations in 2022 was $35,000, whereas the spend for higher-budget updates (with the top 10% of spend) reached $200,000. Renovation activity continues into 2023, with almost half of homeowners planning projects this year (49%), at an anticipated median spend of $25,000 and $138,000 for higher-budget projects.
While the majority of renovating homeowners continued to rely on savings to fund home renovations (79%), the share fell by 3 percentage points year on year. Similarly, reliance on credit cards dropped significantly (11%, compared with 17% in 2021). Both cash from a mortgage refinancing and gift or inheritance rose slightly year on year (13% and 9%, compared to 11% and 7%, respectively).
“Homeowners are committed to their current homes and we continue to see investments that help spaces to function better for the long term,” said Liza Hausman, vice president of Industry Marketing at Houzz. “We’re also seeing an increased focus on efficiency, with homeowners making upgrades that will help to conserve energy and keep associated costs down.”
Almost half of renovating homeowners cite improving energy efficiency as highly important when completing home improvements (46%) and upgrades to windows or skylights, roofing and insulation have increased steadily since 2020 (27%, 21% and 16%, compared with 20%, 16% and 12%, respectively). One in 7 renovating homeowners purchased solar power systems (15%) increasing 2 percentage points since 2020 (13%).
Kitchens and Bathrooms Remain a Priority
Interior spaces are the most popular areas to renovate (77%), followed by improvements to outdoor areas and adding extensions (57% and 18%, respectively). Kitchen and master bathroom projects remain a priority during renovations (33% and 25%, respectively) and command the highest median spend at $30,000 and $19,000, respectively.
Upgrades to Home Systems
With more than two-fifths of the surveyed homeowners living in homes built in 1980 or earlier (42%), homeowners are focusing on home system improvements. Over a third of renovating homeowners upgraded electrical in 2022, closely followed by plumbing and cooling systems (36%, 33% and 27%, respectively).
Professional Demand Continues
Demand among renovating homeowners for professionals continues to grow (94%, compared with 91% in 2020). Among professionals hired, electricians, plumbers, painters, and carpenters were the most common (72%, 60%, 44% and 43%, respectively). Tile, Stone or Benchtop professionals saw the most significant increase in demand, rising 14 percentage points year on year (38%, compared to 24% in 2021).
Improving the Kerb Appeal
Upgrades to the front of the house have risen significantly since 2020, increasing 7 percentage points (55%, compared to 48% in 2020). Other exterior improvements include exterior paint, windows or skylights and gutters or downspouts (30%, 27% and 23%, respectively).
* Median spend is the midpoint level, meaning half of renovating homeowners on Houzz spent more and half spent less.
The Houzz & Home Survey
The annual Australia 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 2022, 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 2023. The 2023 study includes more than 1,500 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 Survey was sent to registered users of Houzz and fielded December 2022 through March 2023.
The full report is available here.
Houzz has over 25 million photos of professionally designed interiors and exteriors, including completed kitchen and bathroom projects, and more than 3 million home renovation and design professionals including architects, interior designers, home builders and design and construction firms.
About Houzz
Houzz is the leading platform for home renovation and design, providing an all-in-one software solution for industry professionals and tools for homeowners to update their homes from start to finish. Using Houzz, people can find ideas and inspiration, hire professionals and source products. Houzz Pro (houzz.com.au/pro) provides home industry professionals with a business management and marketing SaaS solution that helps them to win projects, collaborate with clients and teams, and run their business efficiently and profitably. 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. For more information, visit houzz.com.au. Houzz is a registered trademark of Houzz Inc. worldwide.