Homebuyers investing in renovation to improve lifestyle, survey finds

The latest Houzz & Home Australia Survey shows half of homeowners on Houzz Australia are planning to renovate their home (57 per cent) at a median spend of $25,000.

The annual survey of more than 7200 respondents in Australia also shows that improving a home’s design or functionality are the top considerations during renovations (74 per cent each). Also important is increasing the home’s resale value for nearly half of renovating homeowners (46 per cent). In fact, eight in 10 homeowners believe their renovation had a positive impact on home value (80 per cent), and nearly half of homeowners believe that their home value has increased by at least the full amount of the project cost post-renovation (37 per cent).

The survey also found repeat homebuyers invest the most in home renovations at a median spend of $30,000, followed by long-term owners and first time homebuyers ($22,000 and $15,000 median spend, respectively).

“Recent buyers and long-term homeowners alike are keen on investing in major projects and they’re validated by the value these projects have brought to their homes,” says Nino Sitchinava., Houzz principal economist. Kitchens topped the list of interior updates for renovation frequency in 2017.

Other top findings include:

● More Deliberate Planning and Budgeting: Over the past two years, homeowners have become more deliberate in planning and budgeting for renovations and were seven percent more likely to set a budget in 2017 than in 2015 (74 and 67 per cent, respectively).

● Home Professionals in High Demand: More than nine in 10 renovating homeowners chose to hire a home professional for renovation needs (92 per cent). Repeat homebuyers are the most likely to seek professional assistance (94 per cent), followed by long-term homeowners and first-time homebuyers 89 and 88 per cent, respectively).

● Plumbing and Electrical Top System Upgrades: Homeowners prioritised plumbing and electrical over any other system during renovations (32 and 31 per cent, respectively). First-time homebuyers are twice as likely to upgrade electrical systems during renovations as long-term homeowners (52 versus 25 per cent, respectively).

The annual Houzz & Home survey is the largest survey of residential remodelling, building and decorating activity published. The survey covers a wide range of renovation projects in 2017, 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 2018.

The 2018 study includes more than 7200 respondents in Australia 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 & Home Survey was sent to registered users of Houzz Australia and fielded in March and April 2018.