The median spend on home improvement projects decreased in 2019 relative to 2018 because of smaller average project scope, according to the ninth annual Houzz & Home Survey. Based on the responses of more than 87,000 Houzz users across the United States, Houzz determined the median spend decreased from $15,000 to $13,000. While the majority of homeowners spent more than $10,000 on renovations, the share of renovators spending less than $5,000 on a project increased in 2019. The baby boomer generation accounted for over half of the renovating homeowners in 2019 and had the highest median spend among all generations. After a spike in overall median kitchen remodel spend in 2018, spending returned to previous levels, according to Houzz, mirroring a drop in the overall number of major kitchen renovations recorded in 2019.
Overall, home renovation activity remained stable, with 54% of responding homeowners reporting a renovation project in 2019. The study, fielded between January 2 and March 5, 2020, before stay-at-home orders and the wider impacts of the coronavirus, found that planned renovation activity remained consistent with past years.
“Following significant growth in home renovation activity over the past few years, we’re seeing the market settle somewhat in terms of scope and spend,” Marine Sargsyan, Houzz senior economist, said in a news release. “That said, Baby Boomers, particularly those who have been in their homes for more than six years, are continuing to drive renovation activity and spend, bringing consistency to the market as they pursue projects that will allow them to age in place for the next decade or more.”
Popular Projects
Consistent with recent years, interior room remodels remained the most common renovation projects among homeowners. Kitchens and guest bathrooms remain the most popular rooms for upgrades, according to Houzz. While the average renovating homeowner tackled nearly three interior room remodels and/or three room additions, the average number of projects per homeowner continued to trend downward in most categories.
The most common exterior building upgrades in 2019 involved roofing, exterior paint, and windows and skylights, according to Houzz. Exterior building material projects maintained their frequency from 2018, and roofing and window projects remained the most expensive exterior projects for homeowners.
One in 10 renovating homeowners spent more than $80,000 on their home renovations in 2019. Among these projects, younger homeowners experienced a growth in expenditure, with Houzz reporting Gen Zers were up 90% and millennials up 8% compared to the previous year. High-end project spend among Gen Xers and baby boomers dropped in 2019.
A quarter of homeowners made tech-related purchases during their 2019 renovations. Smart technology, including app-controlled light fixtures, home assistants, smart thermostats, and security cameras, was the most popular tech update installed by homeowners in 2019, according to Houzz.
One in 10 homeowners upgraded or added home offices in 2019, with millennials and Gen Xers most likely to pursue home-office projects. Recent research suggests that home-office upgrades or additions are among the most desired projects among homeowners confined to their homes during coronavirus-enforced stay-at-home orders.
The COVID-19 Effect
The Houzz & Home Survey was fielded prior to the widespread outbreak of coronavirus and related disruptions. At the time of the survey, 51% of homeowners reportedly planned to continue or start renovation projects in 2020, with a median spend of $10,000.
“Subsequent surveys have shown that over half of homeowners who were in the midst of a project at the start of the pandemic were able to continue with renovations. That said, some homeowners have opted to delay certain elective renovations due to implications related to social contact, labor and material availability and personal discretionary spending,” Sargsyan said. “Maintenance and repairs, on the other hand, are more likely to proceed, especially when the need is urgent. Deferred maintenance will accrue during this period, setting the stage for a renewed burst of activity following the pandemic.”
Staying On Budget Remains Difficult
Keeping renovation projects within budget was among the top challenges for renovating homeowners in 2019. Almost one in three renovating homeowners reported going over budget on a project, with only 3% of renovators reporting completing a project under budget. Additionally, 29% of renovating homeowners did not even set a budget for their project prior to beginning it. Homeowners exceeding their budget did so because products or services were more costly than expected, because projects were more complex than anticipated, or because homeowners made decisions to purchase more expensive products or materials than initially planned.
The Houzz & Home Survey found that, on average, planning renovation projects took longer than actual renovations. While construction of projects took between 2.7 and 4.5 months on average, the planning phase took about twice as long. Kitchen and master bathroom projects, among the most common home renovation projects, took on average 8.3 months and 5.4 months to plan, according to Houzz. Projects involving entryways, foyers, or mud rooms took on average 6.6 months to plan.
Homeowners Lean on Pros
Consistent with recent Houzz & Home Surveys, nearly nine in 10 homeowners hired a home professional for renovation projects in 2019. Specialty service providers, such as electricians and plumbers, were hired more frequently, while general contractors, kitchen or bath remodelers, builders, and design-build professionals were hired by about a third of renovating homeowners.
While all generations hire professional help at similar rates, older generations are slightly more inclined to do so, according to Houzz. Eighty-nine percent of baby boomers hired a professional in 2019, compared to 84% of millennials. The gap for hiring pros was widest for specialty trades, as well as construction professional and design-related pros.
Median Spend by Metro Market
San Jose, Calif., remained the most expensive metro area for renovations, with a median spend of $26,000. Homeowners in Boston, Los Angeles, Miami, San Diego, and San Francisco reported a median spend above $20,000 per project.
The Nashville, Tenn., metro saw the largest increase in homeowners’ renovation spend, climbing by 50% from 2018 to 2019. San Diego, Calif., Minneapolis-St. Paul, Minn., and Birgmingham, Ala., also reported median renovation spend increases of 25% or more. Providence, R.I., New Orleans, La., Hartford, Conn., and Milwaukee, Wis., reported the most extreme decreases in median spend from 2018 to 2019.
The Houzz & Home Survey released by Houzz compiled answers from 87,453 respondents in the United States with Houzz profiles. The 160-question survey was distributed to Houzz users between January 2, and March 5, 2020, and collected data on historical and planned spends, professional involvement, motivations and challenges behind projects, and planned activities for 2020.
