Home renovation spend has grown 36 per cent in the last year to a median £15,000, according to the 2021 Houzz & Home survey of more than 3,000 UK respondents. Two-thirds of homeowners made major changes to their kitchens,
Higher budget projects (with the top 10 per cent of project spend) reached £100,000 or more in 2020. Investment in kitchen projects, the most popular among renovating homeowners, jumped 15 per cent to £11,500 in 2020 compared with £10,000 in 2019.
The study also found that the busy renovation market will continue through 2021, with 51 percent of homeowners planning to renovate this year, up five percentage points since 2019 (46 percent).
Major changes to the kitchen
Two-thirds of homeowners made major changes to their kitchens, such as changing the layout of the kitchen and upgrading plumbing, electrical or heating (64 and 63 per cent, respectively). Two in five homeowners reframed, moved or added walls, and increased the size of the kitchen during renovations (44 and 42 per cent, respectively). More than half of homeowners replaced all appliances in their newly renovated kitchens (51 per cent). Other improvements made to the kitchen include new wall colour or texture, worktops, lighting, cabinets and flooring (78, 78, 78, 77, 77 per cent, respectively).
“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 Marine Sargsyan, Houzz senior economist. “This pent up demand, along with long-standing market fundamentals empower homeowners to continue investing in their current homes.”
While cash remains the leading form of payment for home renovations (85 per cent), the share of homeowners opting to finance their projects with credit cards fell significantly to 12 per cent (from 19 per cent in 2019). Millennials are more likely to use credit cards than older generations, who can supplement their savings with cash from previous home sales.
Millennials step up spend
Median renovation spend among Millennials (ages 25-39) jumped 70 per cent in 2020 compared with 2019 (£17,000 versus £10,000), surpassing older generations who historically reflected higher median spend. Gen Xers (ages 40-54) and Baby Boomers (ages 55-74) followed in median renovation spend (£15,000 and £14,000, respectively). That said, the top 10 per cent of project spend for Gen Xers surpassed Millennials (£120,000 versus £106,400).
Homeowners hire more than one pro for help
Nearly nine in ten homeowners hired professional help for their renovations in 2020 (88 percent). Among professionals hired, electricians, plumbers, painters and carpenters were the most common (58, 47, 34 and 34 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 renovations 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 nearly 3,000 respondents in the U.K. alone, providing insights into the home improvement activity of the millions of users of the Houzz site and mobile apps.
The Houzz & Home UK Survey was sent to registered users of Houzz and fielded April-May 2021.
Houzz is the leading platform for home renovation and design, providing people with everything they need to improve their homes from start to finish. On Houzz, people can find design inspiration, research and hire home professionals, and get advice for their projects.
Image Credit: Jours & Nuits © Houzz