Since many of our clients are in the Home Industry, I wanted to share some information with you about the Houzz 2024 Home Renovation Trends Report. This report was just released and marketers can get some solid information by reading the info. At the bottom of this blog is a link so you can download the entire report.
Information is power in your marketing. By understanding the trends, you can focus your marketing on the right audience and support your offer with real data.
Home Renovation Spend Hits New High
Renovation spend has surged in the past three years, with the median spend* increasing by 60% between 2020 ($15,000) and 2023 ($24,000). The top 90th percentile of spend rose as well, increasing by 77% between 2020 ($85,000) and 2023 ($150,000). In addition, more than half of renovating homeowners (51%) spent $25,000 or more on their renovations in 2023, up from 37% in 2020.
Planning Time Far Exceeds Building Time
Homeowners dedicate about twice as much time on average to the planning phase of a renovation project compared with the construction phase, across all rooms. Kitchen renovations had the longest timeline in 2023, with 9.6 months of planning and 5.1 months of building on average. Living rooms follow, with 8.1 months of planning and 4.1 months of building.
Cash is the most common but homeowners are also using Credit Cards
The Home Renovation Trends report points out that cash from savings continues to be the most common funding for renovation projects (83%). It is followed at a distance by credit cards (37%). That said, credit card use jumped by 9 percentage points in 2023, from 28% in 2022.
Homeowners gravitated toward diversified funding sources for bigger-budget projects, between $50,000 and $200,00. Most used home loans and cash from home sales (23% and 21%, respectively) nearly as often as credit cards (32%).
Gen Xers Spend the Most
Gen Xers were born between 1965 -1980. They are 44 -59 years old. Gen Xers spent the most on renovation projects for the second year in a row. Their median dollar spend in 2023 was $25,000, compared with Baby Boomers at $24,000. The top 10% of spenders in these groups had substantial project budgets, with Gen Xers at $180,000 and Baby Boomers at $131,000.
That means if you’re targeting your marketing efforts at the top groups, you will want to focus on age 44-75, the Gen X and Boomer groups.
Kitchens and Bathrooms Projects Lead in Activity
Kitchens continue to lead as the most commonly renovated interior room (29%), followed closely by guest bathrooms and primary bathrooms (27% and 25%, respectively). Living room projects also are popular, with 1 in 5 homeowners (21%) undertaking them. The median spend for kitchen and primary bath projects jumped in 2022, and in 2023 it increased again — by 20% and 11%, reaching $24,000 and $15,000, respectively.
9 out of 10 Homeowners Hire Professional Help
While overall pro hiring remains consistent with the previous year, with more than 9 in 10 renovating homeowners hiring professional help, the share hiring specialty service providers has increased slightly, rising from 46% in 2022 to 47% in 2023. The average number of specialty service providers hired has stayed constant at 1.7 over these two years. On the other hand, the share of renovating homeowners hiring construction professionals, such as general contractors, has decreased from 44% in 2022 to 42% in 2023. Nearly a quarter of renovating homeowners (24%) hired design-related pros to assist with their projects in 2023.
HVAC Investments Ramp Up
In HVAC, the median spend for various home system upgrades mostly has held steady year over year. However, the median spend on heating and cooling systems has increased by 10% for both, reaching $5,500 and $6,000, respectively. These two types of upgrade also command the highest amount of all home systems.
The median spend on electrical system upgrades also rose, from $1,800 in 2022 to $2,000 in 2023.
Homeowners continue to enhance several systems, upgrading plumbing (28%), electrical (26%) and automation (23%) most frequently. Notably, security upgrades have maintained their share (22%) since overtaking heating and cooling in 2020.
Paint, Lighting, Automation, Fabulous Showerheads
In another home renovation trend, among renovating homeowners, 64% bought paint for their projects in 2023.This made paint most popular purchase once again. However, that percentage is 4 points lower than in 2022. Light fixtures are purchased most frequently (52%) after paint. A lot of homeowners have converted to LED lighting. Many homeowners also upgraded to smart lighting. And given that kitchens and baths are the most popular spaces to renovate, it’s not surprising that faucets and shower heads rank just below lighting (49%).
Final Comments
This report is based on findings from a survey of 32,615 users. This includes 17,713 renovating U.S. homeowners who provided Houzz with their home renovation info in 2023 along with plans for 2024. To download the entire report Click HERE.
Remember, don’t just wait for customers to call you. You need to seize the opportunity and reach out to the best prospects in your marketing. As I mentioned earlier, Homeowners, age 44-75 years old is your sweet spot. Credit-worthy. Based on your specialty, select the price point of the home they own, how many years they’ve been in the home; the age of the home. And, don’t forget about New Homeowners. New Homeowners spend serious dollars to renovate and upgrade homes they’ve bought!