Houzz recently released the results of the eighth annual Houzz and Home Survey. The survey of more than 140,000 U.S. respondents is the largest survey of residential remodeling, building and decorating activity published. And although the survey primarily focuses on interior renovation and remodeling trends, it also offers data regarding exterior upgrades and outdoor projects relevant to landscape industry professionals.
Overall, renovation activity remained strong through 2018 with more than half of homeowners on Houzz remodeling (54 percent), at a median spend of $15,000. Similar to expectations from previous years, 51 percent of homeowners plan to continue or begin renovations this year at a median spend of $10,000, signifying that 2019 is on track to be another robust year for the home improvement market.
As homeowners consider whether to renovate their current home or to purchase a new home, the top two considerations for renovating are location and ability to personalize, outranking return on investment. In fact, wanting to stay in the current home is the biggest decision driver for owners who have lived in their homes for six years or more (61 percent), while personalization is the most important factor for those who have lived in their homes for less than one year (56 percent).
“Pent up demand continues to be the biggest trigger for renovations today, as older generations, who represent four in five renovating homeowners, prefer to stay put and invest in the design and functionality of their current home over moving to a different home,” said Sitchinava.
The majority of homeowners pay for renovations using cash from savings, however the share of homeowners paying for renovations with a credit card continues to rise (37 percent in 2018 versus 33 percent in 2017). Reliance on credit cards and gifts or inheritance as funding sources is higher in younger generations (under 40), while secured home loans and past home sale proceeds are key for homeowners 40 and older.
“Last year’s 10 percent increase in tariffs on imported building materials is likely one of several forces hitting consumer pockets,” said Nino Sitchinava, Houzz principal economist. “We expect similar effects to take place in 2019 given the recent breakdown in trade negotiations.”
A good sign for service providers, four in five renovating homeowners hired a professional in 2018 (87 percent). While Baby Boomers are more likely to hire professional help than Millennials (89 versus 82 percent, respectively), the gap is surprisingly narrow.
In terms of outdoor renovation, most homeowners who renovated in 2018 focused on improvements to their landscape beds and borders, outdoor lighting, and lawns, followed by fences, patios, terraces and decks.
Among homeowners who renovated in 2018, paint was the number one home improvement product purchase, followed by other products for interior remodeling; but lawn and garden supplies ranked fifth overall at 44%.
About The Houzz and Home Survey
The annual Houzz and Home survey is the largest survey of residential remodeling, building and decorating activity published. The survey covers a wide range of renovation projects in 2018, 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 2019. The 2019 study includes more than 140,000 respondents in the U.S. alone, providing insights into the home improvement activity of the more than 40 million monthly unique users of the Houzz site and mobile apps. The Houzz and Home Survey was sent to registered users of Houzz and fielded in February-April 2019. For the full report, visit http://st.hzcdn.com/static/econ/2019USHouzzAndHome.pdf
Houzz is the leading platform for home renovation and design, providing people with everything they need to improve their homes from start to finish – online or from a mobile device. From decorating a small room to building a custom home and everything in between, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals throughout the country and around the world. With the largest residential design database in the world and a vibrant community empowered by technology, Houzz is the easiest way for people to find inspiration, get advice, find products and hire the professionals they need to help turn their ideas into reality. For more information, visit houzz.com.