Renovation spending has jumped sixty percent since 2020 MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

Renovation spending has surged since the onset of the pandemic, according to the 2024 Houzz & Home Study from home renovation and design company Houzz. In 2020, median renovation spending was $15,000. That amount increased by sixty percent in three years, with the median home renovation costing $24,000 in 2023. Furthermore, fifty one percent of renovators spent $25,000 or more last year, up from thirty seven percent in 2020. “Despite prevailing economic headwinds, such as high interest rates and persistent inflation, investment in home renovations continued in 2023,” Marine Sargsyan, Houzz staff economist, said in a press release. “The increase in spend and shift to larger-budget projects is likely driven by rising product and labor costs.”

That makes sense, considering that while the amount homeowners spend on renovations has increased, the number of homeowners undertaking renovations has actually decreased: fifty six percent of homeowners took on renovation projects in 2023, down from fifty eight percent in 2022. Cash from savings continues to be the main way homeowners fund their renovations, at eight three percent. Credit card spending is the second-most common source of funding, at thirty seven percent, up from twenty eight percent in 2022. The most popular purchase for home renovations in 2023 was paint, with sixty four percent making the purchase, followed by light fixtures at fifty two percent and new faucets or shower heads at forty nine percent. Major kitchen appliance purchases dropped by four percent, with only thirty two percent of renovating homeowners opting to swap features like dishwashers, fridges or ovens.

That being said, the most commonly renovated room in the house was the kitchen, with twenty nine percent of renovators opting to redo the space. That’s closely followed by guest bathrooms at twenty seven percent and primary bathrooms at twenty five percent. However, the average homeowner takes on approximately three interior room upgrades and two or more outdoor projects during the typical renovation. Following 2022 trends, Gen X homeowners spent the most on renovation projects last year with a median spending of $25,000. In comparison, the median baby boomer spent $24,000.

These two generational groups continue to drive renovation spending, while Gen X spent the most money last year, Boomers took on fifty six percent of all home renovations. Millennials trailed by a large margin, making up only nine percent of all renovations and spending a median of $20,000. Despite generational differences in spending, nearly all renovating homeowners hired professionals to get the job done, at ninety one percent. The average renovating homeowner enlisted one point seven service professionals in 2023, the same as 2022.

The post Renovation spending has jumped 60% since 2020 appeared first on Boston Agent Magazine.

FIRST TIME HOMEBUYERS