Knowing what homeowners are thinking can help you better prepare for projects. That’s why, in August 2023, Houzz surveyed homeowners about their completed and planned renovation projects. More than 2,500 respondents shared info about their motivations, spending and challenges, offering valuable insight for renovation pros, and we’ve added in our own tips and takeaways. Let’s dig in.

Some Holding Off, Almost None Canceling

“The demand for home renovations continues, but the industry is not immune to challenges posed by a volatile national economy,” says Marine Sargsyan, Houzz staff economist. “Faced with inflation and rising interest rates, many homeowners have been forced to reevaluate their ability to pursue immediate improvements.” Accordingly, 1 in 7 survey respondents (15%) has put a home renovation project on hold this year, with no set plans to start in the future. Among those holding off, many point to financial reasons such as available budget (46%) and the effects of inflation (42%). But 19% say they simply haven’t found a pro they want to hire, and 3% say the pro they want to hire isn’t available.

As for canceling a project altogether, only 1% are going this route. Of those, 23% say they can’t find the right pro for the project and 14% say the pro they want to hire isn’t available.

Tips: If you have time to take on more projects, boost your marketing efforts so homeowners can find you more easily. If your schedule is jam-packed, consider freeing up some time by using software that streamlines the process and automates many tasks.

Also of note: 12% of respondents are holding off on a project because they don’t have the time for it, while 9% point to the same reason for canceling.

Tip: Consider ways to reduce homeowners’ time commitment, such as letting them approve plans, see project progress and pay invoices quickly and easily online.

Positive Outlook Prevails

Given that 84% of projects are continuing as planned, renovation pros are feeling optimistic. “Pent-up demand and macroeconomic conditions, such as aging housing stock and high mortgage rates, which continue to drive home improvement activity, are instilling a sense of optimism among builders, remodelers, architects and interior designers as they look ahead to the second half of the year,” Sargsyan says. Nearly one-third or respondents (31%) have already completed a project in 2023, and more than half are either in the middle of a project (25%) or planning to start one by the end of next year (27%).

Takeaway: Prepare for work to hold steady or even increase, despite the uncertain economy.

Pros Still in Great Demand

“As homeowners choose to remain in their aging homes rather than move, they continue to turn to industry professionals for assistance with necessary repairs and discretionary projects that improve their quality of life,” Sargsyan says. Indeed, the overwhelming majority of respondents (91%) hired or plan to hire a professional for their renovation projects. Among those hiring pros, the following are most in demand: general contractors (43%), electricians (30%) and painters (27%).

Tip: Make sure to ask clients for reviews. Great reviews will help seal the deal for you when future potential clients are seeking a renovation pro.

Interestingly, among homeowners who are renovating, 44% say the home was previously renovated fewer than five years ago, and 22% say the home was previously renovated between five and 10 years ago. This means that many homeowners are renovating for aesthetic reasons instead of deterioration alone, and that a wide range of building and design pros are needed.

Bathrooms and kitchens remain the top spaces to renovate, at 55% and 42%, respectively.

Top Challenges Aren’t Financial…

Given the strong effects of inflation on respondents’ renovation plans, it might come as a surprise that staying on budget isn’t the No. 1 challenge in making home improvements. In fact, it’s No. 3, at 28%. And funding the project is No. 5, at 22%. The top two challenges don’t relate to finances at all: No. 1 is finding the right professional(s) to help (47%), while finding the right products and materials is No. 2, at 33%.

Also perhaps surprisingly, many renovation budgets haven’t taken a hit: Nearly half of projects (48%) planned for 2023 have a budget of over $30,000, and 1 in 5 (21%) has a budget of $100,000 or more.

Other challenges don’t involve finances either. More than 1 in 5 respondents (22%) pointed to “educating myself/researching” as a hurdle, while 18% cited being able to visualize the end product.

Tip: Offer 3D floor plans to help clients accurately visualize your design.

…But the Top Reason for Renovating Is

The No. 1 reason homeowners cite for beginning a renovation now is finally having the financial means (46%). Currently having the time is No. 2, at 37%, and recently purchasing the home and wanting to customize it is No. 3, at 27%. Only a very small share say their renovation was triggered by the desire to sell the home and increase its resale value (5%), code requirements (3%) or damage due to a natural disaster (3%).

Tip: Offer financial incentives where you can without cutting profits excessively. For instance, the Houzz Trade Program offers product discounts up to 50%.

Hopefully these insights will help you navigate work more easily through the rest of 2023 and into 2024. Houzz conducts several studies on many aspects of renovation every year, so keep an eye out for more research to come.