Increasing home prices and an improving economy are positive signs for those planning to renovate their homes.
A Houzz report revealed a significant drop in the percentage of homeowners who said they are postponing renovation. Compared to a year ago, those planning to delay remodeling dropped by eight percentage points. And only 11% said they would need to take out a line of credit to finance their home renovations.
Over the next two years, in a “select all that apply” questionnaire, 10% of those surveyed were planning to build a custom home; 40% were planning to remodel or build an addition to their house; and 84% were planning to decorate or redecorate.
The top-five renovation projects planned in the next two years were bathroom renovation/addition (28%); kitchen renovation/addition (23%); flooring/paneling/ceiling replacement (18%); patio or landscape addition/replacement (18%) and windows/doors addition/replacement (15%).
In terms of dollars spent, over the last five years, those surveyed spent an average of $28,030 on kitchen renovations and $10,422 remodeling bathrooms.
Nearly four in 10 home improvement dollars have gone into kitchens in the last five years. The cost of kitchen renovations varied from a high of $54,942, a mid-range of $22,390, and a low of $7,133.
The cost of bathroom renovations varied from a high of $25,018, a mid-range of $10,422, and a low of $2,896.
The top factors driving the desire to renovate were to improve the look, feel and layout of the home (83%); increase home value (54%); improve storage and efficiency (42%); increase energy efficiency (34%); and incorporate new technologies for the home (18%).