This week, the 2024 U.S. Houzz & Home Study launched revealing the momentum behind new homeowner and industry trends, including their financing and motivations behind big home projects. Are homeowners willing to spend more on major home improvement projects? Data suggests yes.
A Spike in Spending
"Renovation spend has surged in the past three years," the report notes. Not only has the median spend increased by 60% between 2020 and 2023, the top 90th percentile increased by 77% over the same time period. The median is defined as the midpoint level, meaning half of renovating homeowners surveyed spent more and half spent less. The data has not been adjusted for inflation.
"In addition, more than half of renovating homeowners (51%) spent $25,000 or more on their renovations in 2023, up from 37% in 2020." 17% of homeowners are willing to allocate more than $100,000 for their home renovation project.
Why Renovate Now? Homeowners Say They Still Have Time
Back in 2020, many homeowners understandably had the time to focus on home renovations, but it's interesting to learn that this number is still climbing. In 2023, 39% still cited having time as their top trigger for embarking on their renovations (and that's up from 37% in 2022). Only 8% are renovating with a plan to sell their home soon.
Following closely, 36% of homeowners say they finally have the financial means, and 25% are prioritizing customizations for a recently purchased home.
Home Systems and Exterior Upgrades
7 in 10 homeowners cite interior room remodels as part of their home improvements, but aligning with other industry reports, home system upgrades, and exterior updates are also prevalent, representing 64% and 58% of remodels, respectively. No doubt this is contributing to why 47% of homeowners hire professionals like general contractors and builders vs. DIY.
The report breaks down homeowner priorities as well as cost increases year over year. "The median spend for various home system upgrades mostly has held steady," the data reports. "However, the median spend on heating and cooling systems has increased by 10% for both, reaching $5,500 and $6,000, respectively. These two [system upgrades] also command the highest amount of all home systems." Furthermore, 24% of homeowners are addressing damage due to home age or natural disaster (a stat that aligns perfectly with CertainTeed's report on building material trends).
Leading home systems trends include:
- 28% of homeowners focusing on home system upgrades invest in plumbing, with $1,200 being the median project cost.
- 26% – Electrical ($2,000 investment)
- 23% – Home automation ($500 investment)
- 22% – Home security ($500 investment)
- 21% – Heating and Cooling ($5,500 and $6,000 investment, respectively, a 10% increase YoY as called out above)
Investments in exterior projects are on the rise, too:
- 22% of homeowners are focused on roofing upgrades, with the median remodeling cost hitting $12,000.
- 21% — Windows and skylights ($6,000 investment)
- 20% — Exterior paint ($2,500 investment)
- 19% — Gutters, Downspouts ($2,000 investment)
- 18% – Exterior doors ($2,000 investment)
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