The popular home remodeling and design platform, Houzz, has released their new 2023 Houzz & Home Study in trends in building, remodeling and decorating. The study included more than 46,000 respondents in the U.S. between December 2022 and February 2023.
Topics cover renovation projects from the past year such as additions, upgrades and design choices, in addition to planned activities for this year. Here are key findings that may confirm your own renovation plans for 2023.
Renovating for the Long Haul
More than 3 in 5 homeowners stated that they planned to stay in their current residence for 11 years or more following a 2022 renovation (61%). On the other side, the number of owners conducting renovations with a plan to sell their home soon has declined by half since 2018 (6% compared with 12% in 2018).
The Majority Remodeled or Redecorated
Nearly 3 in 5 homeowners chose to remodel or decorate their homes last year (58% and 57%, respectively) and nearly half made repairs (48%). That trend seems to continues into 2023, with more than half of homeowners planning projects for the year (55%).
Loans on the Rise
While most homeowners relied on savings to fund renovations (82%), using secured home loans to finance projects became more prevalent (16%, compared with 14% in 2020). More than a quarter of them chose to use secured home loans for projects with a median spend of over $50,000 (26%). While credit cards were also a common option for renovations (28%), the number of homeowners using them fell by 10 percentage points year over year.
Additions are Growing in Number
One in 10 homeowners undertook an addition as part of their 2022 projects (10%), compared with 8% each year from 2018 through 2021. The rooms most associated with additions include kitchens, bathrooms and living rooms.
Kitchens and Bathrooms are the Main Attractions
Interior spaces are the most popular areas to renovate (72%), and owners take on an average of three interior projects at a time. Kitchen and bathroom remodels are at the top and had a rise in owners upgrading these spaces in 2022 (28% and 25%, respectively) compared with 2021 (27% and 24%, respectively).
Aging Homes Need Systems Upgrades
The median home age in the U.S. continues to increase, leading owners to upgrade home systems. Nearly 3 in 10 homeowners upgraded plumbing in 2022, followed by electrical and home automation (29%, 28% and 25%, respectively). Among typical upgrades, cooling and heating systems had the highest median spend last year at $5,500 and $5,000, respectively, and more than 1 in 5 renovating homeowners focused on these systems.
Baby Boomers Lead in Renovations
Baby boomers continued to have the highest renovation activity percentage (59%), followed by Gen Xers and Millennials (27% and 9%, respectively). However, Gen Xers surpassed Baby Boomers in median spend in 2022 for the first time ($25,000 versus $24,000, respectively). Gen Xers and Millennials were slightly more likely to tackle an addition project (10%, each) than Baby Boomers (9%).
Jumps in Hiring Construction and Design Pros
While homeowners hired specialty service providers most frequently, construction professionals like general contractors and remodelers, came in a close second last year (46% and 44%, respectively). The number of homeowners who relied on construction pros grew by 6 percent (from 38% in 2021) and design-related pros saw the same increase (from 20% in 2021).
Smart Lighting Trends Up
Light fixtures were the most popular indoor technology purchase among renovating homeowners in 2022 (55%) and the amount of owners choosing it grew by 4 percentage points year over year. The share of homeowners opting for smart lighting, which can be controlled from a mobile device, grew from 14% in 2021 to 17% in 2022.