HomeRenovation Activity and Spend Hits Three-Year High

Home Renovation Activity and Spend Hits Three-Year

High, Houzz Sur vey Finds

BYHOUZZ.CO.NZ

Home renovation activity and spend have reached the highest rates reported since 2019, according to the annual Houzz & Home survey of nearly 700 New Zealand respondents from leading platform for home renovation and design, Houzz.

Nearly half of homeowners renovated their homes in 2021 (48 percent), up from 41 percent in 2020. Following the 13 percent growth in median spend last year,homeowners report an additional 31 percent jump in median renovation spendat$23,500. Homeowners with higher budgetprojects(thetop 10 percent of spend) invested up to $140,000 in 2021.

Homerenovation activitycontinues into 2022, with nearly half of homeowners planningtorenovate(46 percent) and nearly two-fifthsplanningtodecorate(38 percent) thisyear. Homeowners reporta planned medianrenovation spendat$17,500for 2022.

Interestinglyfor the firsttime since 2019, homeowners with higher-budget renovations (thetop 10 percent of spend) planned spend has increasedto$89,000for 2022versus $73,500,a 21 percent jump.

“Homeowners areclearlycommitted to investing in their homes despite heightened product and materialcostsdrivenbysupply chain disruptions, and are exploring diverse funding sources,” saidTony Been, Managing Director of HouzzAustralia& NewZealand.

Cash from savingsremainsthe most significant source for fundingrenovation projects (81 percent), however, homeowners financing renovation projectswith credit cardsthatcan be usedanywheregainedthreepercentage points (16 percent). More than one in ten homeowners funded theirrenovation projectsthroughcash froma previous sale or refinancing in2021 (13 percent and 12 percentrespectively).

Demandfor home professionals More thanfour in five homeowners sought help from professionalsfor theirrenovations in 2021 (83 percent). Homeowners relied most heavily on theexpertise of specialty service providers such as electricians (53 percent) and plumbers (45 percent)for their projects. That said, builders (30 percent)werethe most hired professionals inconstruction and designrelated services. Interestingly, tile and stone professionals sawa significant12percent jump in 2021comparedwith 2020 (25 percent and 13 percent, respectively).

Switching up interiors Investments ininteriorroomsremained the priorityfor seven in tenrenovating homeownersin2021 (71percent). Kitchens are both the most popular interiorroomto be upgraded and theroom that commanded the highest spendat$30,000.Kitchenssaw an increase inspendof 50 percentcomparedwith 2020 ($20,000). Interiorrooms that saw the most dramatic increase in popularity fromthe previousyear includedprimarybathrooms (23 percent), living/familyroom (22 percent) and diningrooms (19 percent).

The Houzz& Home Survey The annual Houzz& Home survey is the largest survey of residentialrenovation, building and decorating activity published. The survey coversa widerange of renovationprojectsin 2021, from interiorremodels andadditionsto

Home renovation activity continues into 2022, with nearly half of homeowners planning to renovate (46 percent) and nearly two-fifths planning to decorate (38 percent) this year.

home systems,exterior upgrades and outdoor projects. Data gathered includes historical and planned spends,professional involvement, motivations and challenges behind building, renovation and decoratingprojects, as well as planned activitiesfor 2022. The 2022study includesnearly 700respondents in New Zealand,providing insights into the home improvement activity of the millions of users of theHouzz site and mobileapps.

The Houzz & Home Survey was sent to registered users of Houzz and fielded March through April 2022. Houzz has over 25 million photos of professionally designed interiors and exteriors, including completed kitchen and bathroom projects, and more than 3 million active home renovation and design professionals including architects, interior designers, home builders and design-build firms.

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