2016 Houzz Home Renovation Report Reveals Encouraging Trends in Home Renovation

50 percent of the Baby Boomers surveyed want to improve the home they’re in, and spent an average of $73,300 on renovations, with kitchens, bathrooms and living / family rooms the most frequent choice.

50 percent of the Baby Boomers surveyed want to improve the home they’re in, and spent an average of $73,300 on renovations, with kitchens, bathrooms and living / family rooms the most frequent choice.
Frequency of top interior remodels/additions among home renovations

Significantly for the stone trades, updating countertops were a top priority for 70% of kitchen renovations.
Replacing countertops is the top priority in kitchen remodels, while faucets, fixtures and flooring are at the top of the list for master and guest bathroom upgrades.

Replacing countertops is the top priority in kitchen remodels, while faucets, fixtures and flooring are at the top of the list for master and guest bathroom upgrades.

The results of the 2016 annual Houzz & Home survey are in, and it holds good news for renovation professionals. The report reveals that in 2015 many homeowners opted to renovate rather than buy or sell

Houzz is the go-to online community about architecture, interior design, decorating, and home improvement. A well-respected website and app, in May 2016 Houzz was the recipient of the “Best App” award at Google’s Inaugural Play Awards. CNN has dubbed Houzz “The Wikipedia of interior and exterior design sites.” 

The annual Houzz & Home study is the largest survey of residential remodeling, building, and decorating activity conducted. The 2016 survey gathered information from 121,639 respondents in the U.S., representing the activity of the more than 40 million monthly unique Houzz users.

The survey reveals that in 2015 home renovation and decorating activities far outpaced selling or purchasing, with nearly two in three homeowners on Houzz engaging in each one. The study found this was true across generations with Millennials just as active in home renovations as other demographics, though spending far less. On average millennial homeowners spent $24,500 on renovations compared with an average of $73,300 spent by Boomers. 

The survey concluded that the top motivator for renovation projects was that people, across demographics, had more time and money. However, Baby Boomers spent three times more than Millennials on home improvement. Boomers were motivated to remodel rather than buy because they had time and wanted to stay in the “dream” home they already owned, while millennials saw renovation as a more affordable option than purchasing a new home. But no matter the motivating factor, in 2015 more survey respondents chose to renovate than purchase or sell. 

The majority of renovations (four in five) were to the main home structure with kitchens (31percent) and bathrooms (26 percent) significantly more likely to be renovated than any other room. The reason cited most often for the renovations was an outdated design.

Homeowners are investing more in their kitchen and bathroom renovation projects.

The average spent on kitchen and master bath remodeling projects increased by 12 percent from 2014. Significantly for the stone trade, countertops were a top priority for 70 percent of kitchen renovations. 

People tended to stay put. The majority of renovating households had been in their home or planned to be in their home for some time.

 New homeowners were a driving force in renovations with 26 percent of respondents reporting they had recently purchased their homes. 

The average spent on home renovations was $59,800. The majority, 82 percent, financed their renovations with savings rather than through credit or loans. Millennials were more likely to use credit rather than other resources, 32 percent of millennials financed their renovations with a credit card.  Surprisingly nearly one third of homeowners take on a remodeling project without setting a budget.

The survey found that 85 percent of remodelers hired professionals to help with renovations. Among those homeowners who hired a professional, nearly half (46 percent) hired a professional remodeler such as a general contractor, builder, kitchen or bath remodeler or a design-build company. A fifth (20 percent) hired a design professional such as an architect, an interior designer or a kitchen or bath designer. Homeowners cite finding products and materials, staying on budget, and managing the project as the most valued contributions of general contractors and design-build companies during their projects, following the delivery of a quality result.

Over half of homeowners on Houzz plan to continue or start renovations in 2016 (52 percent. Nearly half of homeowners plan to decorate (46 percent). More than four in five (84 percent) plan to hire professional help for their projects.

The annual Houzz & Home study is the largest survey of residential remodeling, building, and decorating activity conducted. The 2016 survey gathered information from 121,639 respondents in the U.S., representing the activity of the more than 40 million monthly unique Houzz users.

The Houzz & Home survey was sent via email to registered users of Houzz and fielded in March-June 2016. The Farnsworth Group, an independent market research firm, conducted the survey.

The current report relies on responses of U.S. homeowners on Houzz (n=121,639) and U.S. homeowners on Houzz who renovated in 2015 (n=71,638).

See the full 2016 Houzz & Home report at info.houzz.com/HH2016.html.