In the face of limited housing options, many potential home buyers are finding themselves stuck in their current residences. While waiting for the real estate market to stabilize, these homeowners are choosing to invest in remodeling projects to enhance the functionality of their spaces for the long term. The surge in remodeling activity witnessed last year reached an all-time high, according to the 2023 U.S. Houzz & Home Study, which gathered insights from approximately 46,000 homeowners. This trend shows no signs of slowing down, as more than half of surveyed homeowners express their intentions to renovate this year, aligning with the levels seen in 2022.
Liza Hausman, Vice President of Industry Marketing at Houzz, a renowned home remodeling resource, observes, “Faced with a scarcity of available homes and high-interest rates, homeowners are choosing to update their existing properties to optimize the space for long-term use.” Hausman further notes a rising interest in home additions, with most homeowners seeking professional assistance to accomplish their goals.
Although many homeowners renovating their properties might not plan to sell in the immediate future, they are mindful of the potential increase in their home’s value as the housing market fluctuates. A separate survey conducted by Cinch Home Services, a reputable home warranty company, reveals that 62% of homeowners cite boosting their home’s value as their primary motivation for renovations.
The survey conducted by Cinch Home Services also highlights the concerns homeowners have when considering selling their homes as is. These concerns primarily revolve around the need for extensive repairs (65%), outdated interiors (60%), lack of trendy fixtures (38%), or inadequate curb appeal (33%).
To address such homeowner dissatisfaction, the National Association of REALTORS®’ 2023 Remodeling Impact Report presents valuable insights into the outdoor trends that yield significant results.
Additionally, Houzz’s research sheds light on emerging home improvement trends that gained traction during the 2022 boom:
- Expanded living spaces: Increasing numbers of homeowners investing in renovations opt for additional square footage. Kitchens, bathrooms, and living rooms rank as the most popular rooms for expansion, according to the Houzz survey.
- Growing remodeling budgets: The median expense for home renovations in 2022 rose to $22,000, a 22% increase from 2021. Notably, 10% of homeowners were willing to spend $140,000 or more. The expenditure rise can be attributed to the increasing costs of materials and products. Houzz reports that kitchen and bathroom remodeling constituted the most expensive projects undertaken by homeowners. In 2022, median spending on kitchen remodels reached $20,000, while primary bathroom renovations amounted to $13,500—an increase of 33% and 50%, respectively, compared to the previous year.
- Upgrades for aging homes: The median age of homes in the United States continues to rise as homeowners strive to update their properties. The Houzz survey reveals that nearly 30% of homeowners prioritize upgrades in plumbing, followed by electrical systems and home automation. Among home system updates, cooling and heating systems account for the most significant expenditures at $5,500 and $5,000, respectively. Explore the most popular home updates based on your home’s age.
- High demand for contractors: The demand remains robust, causing extended wait times in specific markets. According to the Houzz survey, homeowners sought the expertise of specialized service providers and construction professionals, including general contractors, bathroom remodelers, and kitchen remodelers, more frequently in 2022. Homeowners consistently cite “finding the right service providers” as their primary challenge in home renovations, closely followed by identifying suitable projects and staying within budget.
- Financing pricier projects: While 82% of homeowners rely on their savings to fund their projects, an increasing number are turning to secured home loans. In 2022, the percentage of homeowners using such loans rose to 16% from 14% in 2021. Notably, according to the study, homeowners undertaking projects with higher price tags ranging from $50,000 to $200,000 are more likely to opt for loans.
Unlock the full potential of your home by embracing these home improvement trends. With functional updates and modern touches, you can transform your space into a sanctuary that aligns with your long-term vision.