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Renovation Activity & Spend Hit 4-Year High: Home renovation activity and spend are at the highest rates reported since 2018. More than half of homeowners (55%) renovated in 2021, up from 53% in 2020 and 54% in both 2019 and 2018. Following 15% growth in median renovation spend in 2020, homeowners reported an additional 20% jump in 2021 median spend, which now stands at $18,000.
Planned Renovation Spend Increases Year Over Year: More than half of homeowners (55%) plan to renovate in 2022, and nearly half (46%) plan to decorate. For the first time since 2018, homeowners’ planned spend has increased. The median has been $10,000 for the past three years and is now $15,000, a 50% jump.
Recent Homebuyers* Spend Double the National Median Spend: Recent homebuyers, who account for 10% of renovating homeowners, spent nearly double the median ($30,000) in 2021, surpassing the median spend for short-term* and long-term* homeowners ($19,000 and $15,000, respectively). Recent homebuyers with higher-budget projects (the top 10% of spend) invested $175,000, compared with $100,000 for short-term homeowners and $90,000 for long-term homeowners. This higher spend potentially can be attributed to the number of projects recent homebuyers undertake at a single time- an average of three to four rooms as well as home systems such as electrical and plumbing.
Investment in Interior Rooms Rises: Median spend increased for all interior room renovations in 2021. The kitchen, which remains the most popular interior room to be upgraded and is the room with the highest spend, saw an increase in investment of 25% ($15,000 in 2021 versus $12,000 in 2020). Interior rooms with the most dramatic spend increase are guest bathrooms (38%), laundry rooms (33%), living rooms (33%) and guest bedrooms (28%).
Homeowners Explore Alternative Funding Sources:The percentage of homeowners relying on cash from savings to fund their renovation projects declined by 7 points in 2021 (to 76%), after remaining stable over the three years prior (83% each year). In contrast, the percentage of homeowners financing renovation projects with credit cards increased by 6 points (to 35%).
Securing the Grounds: Renovating homeowners spent 25% more on home security systems in 2021 than in 2020. In fact, outdoor security systems are now three times more popular than they were in 2015 and the second most frequently installed outdoor upgrade (17% ), behind lighting (22%). Outdoor security system upgrades are most popular among short-term homeowners (21%) , followed by recent homebuyers (20%) and long term homeowners (14%).
*Recent homeowners are defined as those who have not yet moved into their home or moved in less than a year ago. Short-term owners moved into their home one to five years ago. Long-term homeowners moved into their home six or more years ago.
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Renovation Activity & Spend Hit 4-Year High: Home renovation activity and spend are at the highest rates reported since 2018. More than half of homeowners (55%) renovated in 2021, up from 53% in 2020 and 54% in both 2019 and 2018. Following 15% growth in median renovation spend in 2020, homeowners reported an additional 20% jump in 2021 median spend, which now stands at $18,000.
Planned Renovation Spend Increases Year Over Year: More than half of homeowners (55%) plan to renovate in 2022, and nearly half (46%) plan to decorate. For the first time since 2018, homeowners’ planned spend has increased. The median has been $10,000 for the past three years and is now $15,000, a 50% jump.
Recent Homebuyers* Spend Double the National Median Spend: Recent homebuyers, who account for 10% of renovating homeowners, spent nearly double the median ($30,000) in 2021, surpassing the median spend for short-term* and long-term* homeowners ($19,000 and $15,000, respectively). Recent homebuyers with higher-budget projects (the top 10% of spend) invested $175,000, compared with $100,000 for short-term homeowners and $90,000 for long-term homeowners. This higher spend potentially can be attributed to the number of projects recent homebuyers undertake at a single time- an average of three to four rooms as well as home systems such as electrical and plumbing.
Investment in Interior Rooms Rises: Median spend increased for all interior room renovations in 2021. The kitchen, which remains the most popular interior room to be upgraded and is the room with the highest spend, saw an increase in investment of 25% ($15,000 in 2021 versus $12,000 in 2020). Interior rooms with the most dramatic spend increase are guest bathrooms (38%), laundry rooms (33%), living rooms (33%) and guest bedrooms (28%).
Homeowners Explore Alternative Funding Sources:
The percentage of homeowners relying on cash from savings to fund their renovation projects declined by 7 points in 2021 (to 76%), after remaining stable over the three years prior (83% each year). In contrast, the percentage of homeowners financing renovation projects with credit cards increased by 6 points (to 35%).
Securing the Grounds: Renovating homeowners spent 25% more on home security systems in 2021 than in 2020. In fact, outdoor security systems are now three times more popular than they were in 2015 and the second most frequently installed outdoor upgrade (17% ), behind lighting (22%). Outdoor security system upgrades are most popular among short-term homeowners (21%) , followed by recent homebuyers (20%) and long term homeowners (14%).
*Recent homeowners are defined as those who have not yet moved into their home or moved in less than a year ago. Short-term owners moved into their home one to five years ago. Long-term homeowners moved into their home six or more years ago.
Download the Full Report
See Related Stories: