2014 Houzz remodeling survey of 200,000 homeowners
The 2014 Houzz remodeling survey reveals that owners are staying put for now—not planning to move—and investing in features to help them live better in their homes.
Take a look at financing strategies, the biggest challenges, differences among generations, most popular projects and more… including how people pick their contractor. This new data may help your own decision making and planning process.
Remodel vs. Sell?
With the exception of Millennials, the majority of U.S. homeowners who are remodeling plan to stay in their home long term, according to the third annual Houzz & Home Survey. It tabulated the responses from more than 135,000 respondents in the U.S. among the 190,000 respondents globally. 53% of U.S. homeowners say they are remodeling to increase the resale value of their home, but have no plans to move in the next five years.
While homeowners remain cautious about the economy, 74% said their local housing market has improved.
Those who report a significantly improved local housing market are more than twice as likely to be planning to remodel than they are to move in the next two years.
Motivations for remodeling
Among those planning to remodel, one in five feel that prices are rising too fast to consider moving at this time; a quarter would prefer to move but say remodeling their home makes more economic sense. Millennial homeowners are more likely than other age groups to aspire to move to a new home in the next five years, and 36 percent of them are remodeling to increase home value with an eye on moving to their next home.
For additional insights, read the Houzz survey article online including the comments of experts in the field.
Financing the remodel
Cash remains the dominant source of financing across all age groups and areas of the country, with 80% of homeowners saying they paid for their last remodeling project out of pocket. Millennials were more likely to borrow from friends and family to pay for their recent project and are more likely to have used a credit card (30%) to finance their last remodeling or building project than other age groups (21%).
“The investment that people make in their homes is not only a financial one, it’s also a very emotional one,” said Liza Hausman, vice president of Community for Houzz.
“Rather than opting to move, the majority of Houzz homeowners undertaking renovation projects are choosing to do so because they want to stay in their home, not because they can’t afford to move. Significantly more homeowners on Houzz are able to fund their remodeling projects this year compared with last year, and we see them investing to create a home that meets their needs now and for the long-term.”
Most popular remodeling projects
Bathrooms and kitchens are the most popular renovation projects again this year, with 26 percent of respondents planning a bathroom remodel or addition, and 22 percent planning a kitchen remodel or addition in the next two years.
Kitchens continue to receive the highest share of dollars overall with U.S.
The Houzz remodeling survey also found that homeowners are ‘doing more with less,’ with 76 percent saying that they retained their home’s existing footprint in their last remodeling project. Those with homes larger than 4,000 sq. ft. are twice as likely to make additions of 1,000 sq. ft. or more.
Other Key U.S. Findings
• From initial research to the start of construction, homeowners spend six months to a year planning for big ticket renovation projects including, complete home remodels (9.7 months) and kitchen remodels/additions (8.3 months)
Top challenges for homeowners renovating are finding the right products (39%), defining their style (28%), making decisions with spouse/partner (25%) and educating themselves (22%).
Millennials had more trouble defining their style and making decisions with their spouse or partner than other age groups
• Homeowners who plan to hire a professional service provider over the next two years are most likely to hire a general contractor (52%) and a carpet/flooring professional (34%)
The annual Houzz remodeling survey is the largest survey of residential remodeling, building and decorating activity conducted. It covers historical and planned projects, the motivations behind these projects, and the impact of the economy on home remodeling, building and decorating plans among the more than 20 million monthly unique users that use Houzz. The Houzz & Home Survey was emailed to registered users of Houzz between January and March 2014. You can download the full report at http://info.houzz.com/HH2014US