INDIANAPOLIS — Survey data has revealed “consistently strong spending” across all three categories of home services spending – improvement, maintenance, and emergency repairs – with homeowners continuing to prioritize their home while investing in improvement and maintenance projects.
That’s the key conclusion of Angi’s latest “State of Home Spending” report, an annual study that examines the projects completed by homeowners over the past year, as well as their future home-improvement plans and the motivating forces driving their decisions.
“Considering the significant role our homes play in our lives, and the love most people feel toward them, it’s no surprise that 65% of surveyed homeowners intend to make a large investment in their homes over the next five years,” said Angi, the Indianapolis-based internet services company formed in 2017 by the merger of Angie’s List and HomeAdvisor.
“Given the enduring shift in motivations to undertake home improvement work, it’s clear there will be a continued focus on projects that are not only functional but also enhance livability and adapt the home to better suit homeowners’ current needs,” Angi said, noting that researchers anticipate an ongoing emphasis on maintenance projects and improvements to high-function spaces such as kitchens and bathrooms, along with major outdoor renovations, upgrading HVAC systems, and installing solar panels.
Among the highlights of Angi’s report:
- Total spending across home improvement, maintenance, and emergency repairs increased 6% in 2023, although the number of total projects declined. Some 40% of homeowners reported taking on more home-improvement work in response to rising interest rates that made moving or purchasing a new home less feasible. Looking forward, 30% of homeowners plan to undertake more home-improvement projects in 2024 due to continued high mortgage rates.
- 2023 marked the fourth consecutive year that return on investment as the primary motivator of home improvement spending declined. Prior to the start of the COVID-19 pandemic, 2020, ROI was consistently a top motivating factor for doing work on homes, Angi noted, “but as the pandemic changed the way we think about our homes, it also changed what motivates American homeowners to take on improvements.
“Return on investment isn’t the sole factor guiding decisions,” Angi said. “People want to maintain the condition of their home because they love them (and) want to make them work for them as their lives and families change. “This positivity towards our homes and continued investment is a bright spot.”
- For the first year since 2020, COVID-19-related disruptions and materials shortages were no longer the primary causes of project delays or postponements in 2023. Instead, the top two reasons for not completing work last year were budget-related: project costs or estimates were too high, or there was a need to prioritize emergency or unplanned projects. In another shift from previous years, homeowners who exceeded their time or budget on projects cited design choices, rather than material delays and shortages, as the core reason, Angi said.