Recent homebuyers drive renovation activity, Houzz study finds

Recent homebuyers drive renovation activity, Houzz study finds
Recent homebuyers drive renovation activity, Houzz study finds

Recent homebuyers are taking on larger scope projects than all other home renovators according to the Houzz & Home Australia survey from Houzz, the platform for home renovation and design.

The survey, of almost 10,000 respondents in Australia and more than 185,000 globally, revealed that over a quarter of renovations are driven by recent home purchases (29 percent).

Recent homebuyers are nearly twice as likely to renovate all of their interior spaces than the average home renovator (15 percent versus eight percent, respectively).

When considering priorities, kitchen projects top the list for recent buyers (31 percent versus 25 percent for the average renovating homeowner), followed by living rooms (32 percent versus 23 percent) and master bathrooms (22 percent versus 17 percent).

“2016 was another strong year for the home renovation market, with homeowners continuing to invest in their homes," said Nino Sitchinava, principal economist at Houzz.

“While the majority of renovations are spurred by homeowners’ desire to upgrade a home they have lived in for some time, recent home purchases are also an important driver of home renovation activity.

“Recent homebuyers tend to do more, spend more, and are more likely to hire professionals to help with their renovation projects than other homeowners.”

This year is on track to be another boom year for home renovations, with half of homeowners on Houzz planning to begin or continue renovations in 2017 (50 percent).

Homeowners plan to spend an average of $47,000 on home renovations in 2017. In 2016, kitchen renovations commanded the highest spend ($19,300), followed by master bathrooms ($12,300).

Other top findings include:

Energy Efficient and Healthy Homes:

● While design and functionality top the list of renovation considerations (both 74 percent), almost half of homeowners consider energy efficiency extremely important to their projects (42 percent). To create more energy efficient homes, homeowners are installing home automation technology and solar systems during their renovations (8 percent and 7 percent respectively). Home automation is even more common among recent buyers (15 percent).

● Australian homeowners are also health conscious with almost a quarter reporting health concerns as a priority factor to their renovation project (24%).

Cash is King:

● Seventy-nine percent of homeowners reported to have used cash and savings to fund their projects in 2016.

● Refinancing trails behind at second (15 percent in 2016), with recent homebuyers more likely to refinance than long term owners (21 percent versus 15 percent, respectively).

● Recent buyers are also more likely to use credit cards to fund their projects (16 percent versus 13 percent for long term owners).

Breaking Budget:

● The top challenge facing renovating homeowners in 2016 was staying on budget (34 percent).

● Other top challenges include finding the right products and materials and finding the right service providers (both 33 percent).

Pro is The Go:

● Nine in ten renovating homeowners hired professionals for their renovation projects in 2016, consistent with 2015 (both 89 percent). Recent homebuyers are even more likely to rely on professional help than long term owners (92 percent versus 88 percent, respectively).

Raring to Renovate:

● One in two homeowners on Houzz report plans to renovate over sell their homes (53 percent versus seven percent respectively).

Tags: 
Housing Renovations Houzz

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