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Home owners are always on the lookout for ways to increase the value of their homes, and 2018 has been a big one for the renovation industry, says a new survey.
According to the annual Houzz &amp; Home Australia survey 57% of home owners on the platform are planning to renovate their home.
<a href="https://www.propertyobserver.com.au/images/2018/10/4/renovation%201.jpg" target="_blank">Click here to enlarge:</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/4/renovation%201.jpg" alt="">
In 2017, over 50% of home owners renovated their homes at a median spend of $25,000.
Repeat home buyers invested the most in home renovations at a median spend of $30,000.
More than a quarter of renovating home owners tackling kitchens (26%), the top target for interior renovation, with a median spend of $20,000 for a large kitchen (more than 10 square metres).
Living/family rooms, bedrooms, master bathrooms and laundries (24, 18, 18 and 17% respectively) followed on the priority list.
<a href="https://www.propertyobserver.com.au/images/2018/10/4/renovation%202.jpg" target="_blank">Click here to enlarge:</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/4/renovation%202.jpg" alt="">
Houzz principal economist Nino Sitchinava said the survey results were a strong signal for the industry.
"All of the evidence from our research points to 2018 likely being another robust year for the home improvement industry,” says Sitchinava.
“Recent buyers and long-term homeowners alike are keen on investing in major projects like kitchens and bathrooms and they’re validated by the value these projects have brought to their homes."
<a href="https://www.propertyobserver.com.au/images/2018/10/4/renovation%203.jpg" target="_blank">Click here to enlarge:</a> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/4/renovation%203.jpg" alt="">
The report’s other conclusions include:
<ul>
<li>More Deliberate Planning and Budgeting: Over the past two years, homeowners have become more deliberate in planning and budgeting for renovations and were seven percent more likely to set a budget in 2017 than in 2015 (74 and 67%, respectively).</li>
<li>Plumbing and Electrical Top System Upgrades: Homeowners prioritised plumbing and electrical over any other system during renovations (32 and 31%, respectively). First-time home buyers are twice as likely to upgrade electrical systems during renovations as long-term homeowners (52 versus 25%, respectively).</li>
<li>Home Professionals in High Demand: Over nine in 10 renovating homeowners chose to hire a home professional for renovation needs (92%). Repeat home buyers are the most likely to seek professional assistance (94%), followed by long-term homeowners and first-time home buyers 89 and 88%, respectively). </li>
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Home owners continue to look for renovation benefits

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Homeowners in Australia are active home upgraders, according to the 2016 Houzz &amp; Home report.
Houzz, the website platform for home renovation and design, undertook a study, of almost 14,000 respondents in Australia and over 229,000 respondents globally.
It revealed that more than half renovated their homes in 2015 (56 percent), with a similar portion reporting their plans to renovate in 2016 (49 percent).
Almost half of renovating Australian homeowners opt to take on a renovation instead of buying an already “perfect” home due to their desire to stay in their current home or lot (46 percent). A third choose the renovation route in order to remain in their current neighbourhood (33 percent), with 29 percent choosing renovation because it was a more affordable option.
For Millennials, financial considerations are more top of mind – over a third cite affordability as the top reason for renovating versus buying (36%). When it comes to the triggers behind taking on a renovation project, finally having the time tops the list for Aussie renovators (35% of homeowners who renovated their primary homes in 2015), ahead of finally having the financial means (34 percent).
“As the largest survey of home renovation, decorating, and building activity published, Houzz &amp; Home provides unprecedented insights into how homeowners are updating their homes,” said Nino Sitchinava, principal economist at <a href="https://www.houzz.com.au/">Houzz</a>. “Our 2016 findings uncover the factors behind what is driving so many Australian homeowners to renovate to create their ideal home rather than purchasing one that is ‘perfect’ as is, as well as how these factors differ by generation. Interestingly, while the generation of homeowners between the ages of 24 and 34 still comprise a small share of the homeownership population, we’re finding that they are quite active when it comes to home upgrades, and are eager to make their homes their own.”
POPULAR PROJECTS
● Homeowners are prioritising renovation and addition projects in their kitchens (26 percent and 6 percent, respectively), living/family room (25 percent and 7 percent, respectively), non-master bedrooms (20 percent and 4 percent, respectively) and master bathrooms (19 percent and 4 percent, respectively).
● Updating an outdated or undesirable design/style is the top issue addressed in Aussie kitchens and bathrooms (44 percent and 49 percent, respectively). Old or outdated finishes is the top issue being addressed in other interior room renovations (38 percent).
● Many homeowners are tackling home systems upgrades including plumbing (32 percent), electrical (31 percent) and cooling (19 percent).
● For exterior upgrades, top projects include updates to paint (28 percent), gutters/drain pipes (22 percent) and decking (22 percent).
BUDGET? WHAT BUDGET?
● One-third of renovating homeowners take on a renovation project without setting a budget (33 percent), and close to the same share exceed their established budget (27 percent). These figures are largely consistent across all age groups.
● The top budget buster is the decision to opt for more upscale products and materials (44 percent), ahead of products/services being more costly than expected (42 percent) and the discovery of unexpected construction-related issues (33 percent).
● Aussie homeowners on Houzz spent $68,300 on average in home improvements in 2015. Homeowners aged 35-54 drive home renovation spend ($80,300 on average), investing almost twice as much as Millennial homeowners in their home upgrades ($41,200 on average) and a fourth more than those aged 55+ ($57,500 on average).
● When it comes to spending on kitchen renovations – the top home renovation project in 2015 – homeowners spent an average $31,000 on major renovations* of a large kitchen (more than 12 square metres), and $21,840 for major renovations of a small kitchen (less than 12 square metres).
● In terms of bathrooms, homeowners spent an average of $16,440 on major renovations* of a large bathroom in 2015 (more than 5 square metres), and $14,770 for major renovations of a small bathroom (less than 5 square metres).
● How did homeowners finance these projects? The majority of homeowners continue to use personal savings/finances to fund their renovations (78 percent), followed by cash from mortgage refinances (16 percent) and credit cards (14 percent).
A HELPING HAND
● Nine in ten homeowners renovate their homes with professional help (89 percent).
● Professional hiring is popular across all generations of homeowners, although it is slightly higher among those age 55 and over (91 percent, vs. 89 percent for those 35-54 and 85 percent of those 25-34).
● A third of homeowners who hire a professional for their renovations select a home builder (21 percent), while 14 percent hire a kitchen designer or renovator, and 13 percent hire a landscape contractor or gardener.
● Top specialty trades include electricians (71 percent), plumbers (57 percent), and carpenters (40 percent).
THE HOUZZ &amp; HOME SURVEY
*A major renovation at minimum replaces all cabinetry and appliances. Additions are not included in these numbers. Numbers include both DIY projects and those which used design or construction professionals.
The full Australian report is available <a href="https://info.houzz.com/rs/804-JLJ-529/images/Australia_Houzz_%26_Home.pdf">here</a>.
The full Australian report is available <a href="https://info.houzz.com/rs/804-JLJ-529/images/Australia_Houzz_%26_Home.pdf" target="_blank">here</a>.
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Renovation trumps buying 'perfect' home, Houzz study finds

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Recent homebuyers are taking on larger scope projects than all other home renovators according to the Houzz &amp; Home Australia survey from Houzz, the platform for home renovation and design.
The survey, of almost 10,000 respondents in Australia and more than 185,000 globally, revealed that over a quarter of renovations are driven by recent home purchases (29 percent).
Recent homebuyers are nearly twice as likely to renovate all of their interior spaces than the average home renovator (15 percent versus eight percent, respectively).
When considering priorities, kitchen projects top the list for recent buyers (31 percent versus 25 percent for the average renovating homeowner), followed by living rooms (32 percent versus 23 percent) and master bathrooms (22 percent versus 17 percent).
“2016 was another strong year for the home renovation market, with homeowners continuing to invest in their homes," said Nino Sitchinava, principal economist at Houzz.
“While the majority of renovations are spurred by homeowners’ desire to upgrade a home they have lived in for some time, recent home purchases are also an important driver of home renovation activity.
“Recent homebuyers tend to do more, spend more, and are more likely to hire professionals to help with their renovation projects than other homeowners.”
This year is on track to be another boom year for home renovations, with half of homeowners on Houzz planning to begin or continue renovations in 2017 (50 percent).
Homeowners plan to spend an average of $47,000 on home renovations in 2017. In 2016, kitchen renovations commanded the highest spend ($19,300), followed by master bathrooms ($12,300).
Other top findings include:
Energy Efficient and Healthy Homes:
● While design and functionality top the list of renovation considerations (both 74 percent), almost half of homeowners consider energy efficiency extremely important to their projects (42 percent). To create more energy efficient homes, homeowners are installing home automation technology and solar systems during their renovations (8 percent and 7 percent respectively). Home automation is even more common among recent buyers (15 percent).
● Australian homeowners are also health conscious with almost a quarter reporting health concerns as a priority factor to their renovation project (24%).
Cash is King:
● Seventy-nine percent of homeowners reported to have used cash and savings to fund their projects in 2016.
● Refinancing trails behind at second (15 percent in 2016), with recent homebuyers more likely to refinance than long term owners (21 percent versus 15 percent, respectively).
● Recent buyers are also more likely to use credit cards to fund their projects (16 percent versus 13 percent for long term owners).
Breaking Budget:
● The top challenge facing renovating homeowners in 2016 was staying on budget (34 percent).
● Other top challenges include finding the right products and materials and finding the right service providers (both 33 percent).
Pro is The Go:
● Nine in ten renovating homeowners hired professionals for their renovation projects in 2016, consistent with 2015 (both 89 percent). Recent homebuyers are even more likely to rely on professional help than long term owners (92 percent versus 88 percent, respectively).
Raring to Renovate:
● One in two homeowners on Houzz report plans to renovate over sell their homes (53 percent versus seven percent respectively).
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