Home Renovation Activity And Spend Hits Three-Year High, Houzz Survey Finds

Home renovation activity and spend have reached the highest rates reported since 2019, according to the annual Houzz & Home survey of nearly 700 New Zealand respondents from leading platform for home renovation and design, Houzz. Nearly half of homeowners renovated their homes in 2021 (48 percent), up from 41 percent in 2020. Following the 13 percent growth in median spend last year, homeowners report an additional 31 percent jump in median renovation spend at $23,500. Homeowners with higher budget projects (the top 10 percent of spend) invested up to $140,000 in 2021.

Home renovation activity continues into 2022, with nearly half of homeowners planning to renovate (46 percent) and nearly two-fifths planning to decorate (38 percent) this year. Homeowners report a planned median renovation spend at $17,500 for 2022. Interestingly for the first time since 2019, homeowners with higher-budget renovations (the top 10 percent of spend) planned spend has increased to $89,000 for 2022 versus $73,500, a 21 percent jump.

“Homeowners are clearly committed to investing in their homes despite heightened product and material costs driven by supply chain disruptions, and are exploring diverse funding sources,” said Tony Been, Managing Director of Houzz Australia & New Zealand.

Cash from savings remains the most significant source for funding renovation projects (81 percent), however, homeowners financing renovation projects with credit cards that can be used anywhere gained three percentage points (16 percent). More than one in ten homeowners funded their renovation projects through cash from a previous sale or refinancing in 2021 (13 percent and 12 percent respectively).

Demand for home professionals

More than four in five homeowners sought help from professionals for their renovations in 2021 (83 percent). Homeowners relied most heavily on the expertise of specialty service providers such as electricians (53 percent) and plumbers (45 percent) for their projects. That said, builders (30 percent) were the most hired professionals in construction and design-related services. Interestingly, tile and stone professionals saw a significant 12 percent jump in 2021 compared with 2020 (25 percent and 13 percent, respectively).

Switching up interiors

Investments in interior rooms remained the priority for seven in ten renovating homeowners in 2021 (71 percent). Kitchens are both the most popular interior room to be upgraded and the room that commanded the highest spend at $30,000. Kitchens saw an increase in spend of 50 percent compared with 2020 ($20,000). Interior rooms that saw the most dramatic increase in popularity from the previous year included primary bathrooms (23 percent), living/family room (22 percent) and dining rooms (19 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 2021, 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 2022. The 2022 study includes nearly 700 respondents in New Zealand, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.

The Houzz & Home Survey was sent to registered users of Houzz and fielded March through April 2022.

Houzz has over 25 million photos of professionally designed interiors and exteriors, including completed kitchen and bathroom projects, and more than 3 million active home renovation and design professionals including architects, interior designers, home builders and design-build firms.

© Scoop Media