PALO ALTO, CA — Homeowners are renovating “for the long run,” with more than three in five of those surveyed planning to remain in their home for 11 years or more following a 2022 renovation, and the share of homeowners undertaking renovations with a plan to sell down by half since 2018.
That is among the key findings of the 12th annual U.S. Houzz & Home Study, a survey of more than 46,000 U.S. respondents conducted by Houzz, the Palo Alto, CA-based online platform for home remodeling and design.
Nearly 3 in 5 surveyed homeowners (58%) remodeled their homes in 2022 and nearly half (48%) made repairs, according to Houzz. Renovation activity is continuing into 2023, with more than half (55%) of surveyed homeowners planning projects this year, even as the annual growth rate for residential remodeling is expected to decline.
“Faced with shortages of housing stock and high interest rates, we’re seeing homeowners update their current home to make the space more functional for the long term,” said Liza Hausman, v.p./industry marketing for Houzz. “We’re also seeing an uptick in additions, with the vast majority of homeowners hiring professionals to achieve their goals.”
According to Houzz, interior spaces are the most popular areas of the home to renovate, with kitchen and bathroom remodels remaining the leading projects undertaken. A larger share of homeowners upgraded these spaces in 2022 (28% and 25%, respectively) compared with 2021 (27% and 24%, respectively). Kitchens and primary bathrooms also command the highest median spend at $20,000 and $13,500, respectively, Houzz said.
Among the study’s other findings:
- Baby Boomers Lead in Renovation Activity: Baby boomers continued to lead in renovation activity (59%), followed at a distance 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).
- Construction and Design Pro Hiring Jumps. While homeowners hired specialty service providers most frequently, construction professionals such as general contractors and kitchen or bathroom remodelers, came in a close second in 2022 (46% and 44%, respectively). The share of homeowners who relied on construction pros grew by 6% (from 38% in 2021) and design-related pros saw the same increase, growing from 20% in 2021 to 26% in 2022.
- Smart Lighting Makes Gains. Light fixtures were the most popular indoor technology purchase among renovating homeowners in 2022, and the share of renovators choosing it grew by 4% year over year. Notably, 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.