Findings from a survey of 95,920 U.S. homeowners on Houzz about their home renovations in 2016 and plans for 2017
Increase in 2016 spend among millennials and first-time buyers: Renovators who bought their first home in 2016 spent $33,800 on home renovations, on average, a 22% increase relative to 2015. While Baby Boomers and older homeowners (55+) continue to spend roughly three times more than Millennial homeowners (25-34), Millennials invested 7% more in their homes in 2016 compared to 2015.
2017 on track to be another boom year: Over half of homeowners on Houzz plan to continue or start renovations in 2017 (52%), consistent with plans for 2016 reported in last year’s study. Homeowners plan to spend on average $27,300, a 4% increase from planned spend on home renovations in 2016.
Multi-room renovations continue, higher spend on living quarters: Homeowners on Houzz renovate multiple rooms at a time, with recent home buyers tackling 3.5 rooms, on average, compared to 2.5 rooms by long-term owners. Average investment in living spaces, such as living and/or dining rooms, increased 11% in 2016 compared to 2015. In contrast, spend on kitchens and master bathrooms remains flat.
Increase in credit card use: The use of credit cards to fund renovation projects increased in 2016 compared to 2015 (23% vs. 21%, respectively). First-time buyers are nearly twice as likely to use credit cards as long-term owners (39% vs. 21%, respectively) and three times as likely to rely on gifts (15% vs. 5%, respectively). However, cash remains king for all renovators.