New figures out this spring capture the latest statistics in the Home Renovation industry. The statistics are compiled annually by the American software designer Houzz, to best inform the 2.7 million home improvement service professionals who utilize their platform. The latest 2022 Houzz & Home Survey [https://st.hzcdn.com/static/econ/2022-US-Houzz&Home–Study.pdf] compiled findings received from 70,000 of its American users from February through March 2022.
The survey is the largest of its kind and includes 2021’s data on all aspects of residential home renovation projects including Building, Decorating, and Remodeling. Houzz researchers found that Home Renovation has reached its highest rate since 2018.
According to Marine Sargsyan, Houzz staff economist, “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. This is especially pronounced among recent homebuyers, who rely heavily on cash from previous home sales to fund their projects and spend significantly more than the national median.”
Compared to previous years,Home Renovations were more widespread:
AMERICAN HOMEOWNERS PURSUING RENOVATION PROJECTS
- 2021: 55%
- 2020: 53%
- 2019: 54%
- 2018: 54%
American homeowners spent 20% more on renovations compared to the previous year:
AMERICAN HOMEOWNERS’ AVERAGE RENOVATION SPENDING
- 2021: $18,000
- 2020: $15,000
- 2019: $13,000
AMERICAN HOMEOWNERS’ HIGHER-BUDGET INVESTMENTS
- 2021: $100,000 or more
- 2020: $85,000
- 2019: $80,000
This year, homeowners are showing a strong intent to renovate:
AMERICAN HOMEOWNERS’ PLANNED 2022 IMPROVEMENTS
- Renovations: 55% (2021: 55%)
- Decorating: 46% (2021: 55%)
- Repairs: 35% (2021: 46%)
- Homebuilding: 3% (2021: 3%)
Since last year, homeowners are expecting to spend 50% more on home improvement projects. This is the highest increase since 2018.
AMERICAN HOMEOWNERS’ PLANNED IMPROVEMENT SPENDING
- 2022: $15,000
- 2021: $10,000
- 2020: $10,000
- 2019: $10,000
- 2018: $10,000
AMERICAN HOMEOWNERS’ HIGHER-BUDGET PLANNED IMPROVEMENT SPENDING
- 2022: $75,000
- 2021: $60,000
Compared to 2020, last year homeowners spent 25% more on remodeling the Kitchen. Their spending increase was greatest, however, for Guest Bathroom, Laundry Room, Living Room, and Guest Bedrooms renovations.
2021 HOME INTERIOR ROOM RENOVATIONS
KITCHEN:
$15,000 (27% of all projects)
(Up 25% over 2020)
PRIMARY BATHROOM:
$9,000 (22% of all projects)
(Up 13% over 2020)
GUEST BATHROOM:
$4,400 (24% of all projects)
(Up 38% over 2020)
LIVING ROOM / FAMILY ROOM:
$4,000 (20% of all projects)
(Up 33% over 2020)
PRIMARY BEDROOM:
$2,000 (14% of all projects)
(Up 11% over 2020)
LAUNDRY ROOM:
$2,000 (13% of all projects)
(Up 33% over 2020)
DINING ROOM:
$1,900 (13% of all projects)
(Up 27% over 2020)
GUEST BEDROOM:
$1,275 (16% of all projects)
(Up 28% over 2020)
HOME OFFICE:
$1,200 (12% of all projects)
(Up 9% over 2020)
CLOSET:
$1,000 (13% of all projects)
(NA)
In 2021, 63% of renovating homeowners upgraded their Home Systems, and Plumbing, Electrical, and Automation were their three most popular projects. The average spending on electrical upgrades increased by 50%.
2021 HOME SYSTEM UPGRADES
COOLING:
$5,000 (2% of all projects)
(Up 11% over 2020)
HEATING:
$4,300 (20% of all projects)
(Up 8% over 2020)
ELECTRICAL:
$1,500 (24% of all projects)
(Up 50% over 2020)
WATER HEATER:
$1,200 (18% of all projects)
(Up 20% over 2020)
PLUMBING:
$1,000 (27% of all projects)
(NA)
ENTERTAINMENT:
$1,000 (10% of all projects)
(NA)
SECURITY:
$500 (21% of all projects)
(Up 25% over 2020)
VENTILATION:
$500 (10% of all projects)
(NA)
AUTOMATION:
$400 (24% of all projects)
(NA)
In 2021, Roofing was the most popular Exterior Upgrade, as homeowners spent 11% more on their projects than they did in 2020. The average spending for all Exterior Building Upgrades increased overall, with large spending increases (40% to 50%) for Gutters / Downspouts and Exterior Doors.
2021 HOME EXTERIOR BUILDING UPGRADES
ROOFING:
$10,000 (21% of all projects)
(Up 11% over 2020)
WINDOWS / SKYLIGHTS:
$5,000 (20% of all projects)
(Up 25% over 2020)
STRUCTURAL UPGRADES:
$4,000 (6% of all projects)
(Up 33% over 2020)
SIDING / STUCCO:
$4,000 (8% of all projects)
(Up 33% over 2020)
DECK:
$3,000 (14% of all projects)
(Up 20% over 2020)
PORCH / BALCONY:
$2,000 (11% of all projects)
(Up 33% over 2020)
EXTERIOR DOORS:
$1,800 (18% of all projects)
(Up 50% over 2020)
EXTERIOR PAINT:
$1,500 (20% of all projects)
(Up 25% over 2020)
GUTTERS / DOWNSPOUTS:
$1,400 (18% of all projects)
(Up 40% over 2020)
INSULATION:
$1,200 (11% of all projects)
(Up 20% over 2020)
2021 OUTDOOR HOME SECURITY SYSTEMS INCREASE
While no spending data was published in the study, 2021 Outdoor Security Upgrades were almost three times more popular than they were in 2015. According to the information published, outdoor Lighting, which makes up 22% of all outdoor projects, is closely followed by the installation of Camera and Sensor Security systems at 17%.
“Market fundamentals, including limited and aging housing stock, continue to propel the home renovation market,” stated Sargsyan.
If you’d like to see home renovation statistics in Canada, visit HSC