Home Renovation Spend Rises As Homeowners Invest In Kitchen Projects, Houzz Survey Finds

Homeowners’ Intent to Renovate is Strong Through 2021; Credit Card Usage Declines

Home renovation spend has grown 13 percent in the last year to a median $18,000, according to the 2021 Houzz & Home survey of more than 800 New Zealand respondents. Higher budget projects (with the top 10 percent of project spend) reached $150,000 in 2020. The study also found that the busy renovation market will continue through 2021, with 44 percent of homeowners planning to renovate this year, up two percentage points since 2018 (42 percent).

“While the pandemic caused initial concern for the residential renovation industry, many homeowners finally had the time and financial means to move forward with long awaited projects in the past year,” said Tony Been, Managing Director of ANZ at Houzz. “This pent up demand, along with long-standing market fundamentals empower homeowners to continue investing in their current homes.”

With homeowners home-bound due to the pandemic, the share who reported that they had wanted to pursue a home renovation all along and finally had the time increased by eight percentage points in 2020 (41 percent versus 33 percent in 2018), and remains the top renovation trigger. Nearly one-third homeowners wanted to do it all along and finally had the financial means (30 percent). One in five homeowners claimed to have recently purchased or moved into a new home and wanted to customise it to fit their needs (19 percent). Renovating to adapt to recent changes in lifestyle increased by four percentage points in 2020 from the previous year (17 percent versus 13 percent in 2019).

While cash remains the leading form of payment for home renovations (78 percent), the share of homeowners opting to finance their projects with credit cards fell significantly to 13 percent (from 23 percent in 2019).

Major Changes to the Kitchen

Investment in kitchen projects, the most popular among renovating homeowners, was $20,000 in 2020. Over half of homeowners made major changes to their kitchens, such as changing the layout of the kitchen and upgrading plumbing, electrical or HVAC (59 and 54 percent, respectively). Nearly one third of homeowners reframed, moved or added walls, and increased the size of the kitchen during renovations (31 percent each). The top upgrades homeowners made in their newly renovated kitchens include benchtops, cabinets, taps and fixtures, sinks and splashbacks (80, 76, 74, 72, 69 percent, respectively)

Outdoor Projects Heat Up

While interior room renovations remain the most common projects (75 percent), outdoor projects were popular among half of homeowners (50 percent). Nearly one third of homeowners pursued their projects due to an outdated or undesirable design or style (31 percent). Other challenges addressed by homeowners include outdoor spaces that were poorly laid out or lacked privacy (31 and 20 percent, respectively). Improvements to outdoor spaces were directed towards the grounds, top priorities included updating beds or borders and planters or planter boxes (30 and 19 percent, respectively). Exterior upgrades, such as fences and decks followed in popularity in 2020 (22 and 18 percent, respectively). Nearly one in seven renovating homeowners upgraded their outdoor shed or workshop (13 percent).

Homeowners Hire More Than One Pro for Help

Nearly nine in ten homeowners hired professional help for their renovations in 2020 (87 percent). Among professionals hired, electricians, plumbers, painters, carpenters and builders were the most common (51, 40, 39, 34 and 30 percent).

The Houzz & Home Survey

The annual Houzz & Home survey is the largest survey of residential renovation, building and decorating activity published. The survey covers a wide range of renovation projects in 2020, 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 2021. The 2021 study includes over 800 respondents in New Zealand alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.

The Houzz & Home New Zealand Survey was sent to registered users of Houzz and fielded April-May 2021.

Houzz has over 23 million photos of professionally designed interiors and exteriors, including completed kitchen and bathroom projects, and more than 2.7 million active home renovation and design professionals including architects, interior designers, specialty contractors and design-construction firms. Home Renovation Spend Rises as Homeowners Invest in Kitchen Projects, Houzz Survey Finds

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