Homeowners increasing cost of renovation projects

Homeowners are increasing their renovation efforts, thanks to “finally having the time,” along with the financial backing to do so.

And the statistics show it. In 2015, homeowners increased the average cost of kitchen and bathroom remodeling projects by 12 percent compared to 2014.

According to the results of the Houzz & Home survey, the kitchen once again reclaimed the top spot or home remodeling projects, with 31 percent of respondents remodeling their cooking space. The bathrooms (both master with 22 percent and non-master with 26 percent) landed in second, followed by 23 percent redoing living or family areas.

It appears as though recent homebuyers are leading the drive in renovations. Twenty-six percent of homeowners remodel thanks to their recent home purchases, and they spend more on renovations, compared to homeowners who have owned their homes for longer, by nearly $6,000. Fourteen percent of recent homebuyers renovated all of their interior spaces, compared to 5 percent of homeowners who have lived in there homes for longer. Instead of continuing to look for their dream home, more people are purchasing and then renovating, looking to create their own space, saving money on renovating instead of buying a more apt house, or increasing their return on investment, according to the survey.

And it’s not just recent homebuyers who are renovating. Those looking to sell are also renovating, in hopes of increasing their home’s value, mostly focusing on exterior renovations, like paint, roofing, doors and decks. However, home sellers are spending a average of $36,300, more than $30,000 less than recent homebuyers.

More than 80 percent of homebuyers opted to hire a professional to help with their projects, instead of DIYing. Ninety-one percent of recent homebuyers  reported hiring a professional.

“2015 was another strong year for the home renovation market, with homeowners continuing to increase investment 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 home buyers tend to do more, spend more, and are more likely to hire professionals to help with their renovation projects than other homeowners. As the churn in the housing market picks up in the near future, the home renovation market should see meaningful growth.”