Two metro areas that suffered disasters last year--flooding in Houston and fires in Los Angeles--recorded the biggest gains in median spending for renovations last year and are contributing to robust growth nationwide in 2018, the seventh annual Houzz & Home Survey indicates.
Overall, the survey released yesterday of nearly 131,000 homeowners was extremely positive for remodeling activity; 51% of respondents said they were either planning to begin or continue renovations this year at a median price of $15,000. Those 131,000 were taken from people who have registered with Houzz, so the results can't be taken as representative of the nation as a whole. But they do give a sense of what's on the minds of more renovation-minded Americans.
"All of the evidence from our research points to 2018 likely being another robust year for the home improvement industry,” said Nino Sitchinava, Houzz principal economist. “Recent buyers and long-term homeowners alike are keen on investing in major projects. Kitchens and bathrooms continue to fuel spend, while exterior features and systems, such as home security and automation, are on the rise. "
Here are some key findings from the study:
Costly Disasters
After a perilous hurricane and wildfire season in 2017, home renovations increased by huge margins in affected areas. Median spending on home renovations increased by 60% in Houston year over year, while median spending on renovations in Los Angeles increased by 25%. These two areas had the biggest rise in median spending.
Kitchen and Baths Are King
Bathrooms took two of the three top spots for remodeling spending, while kitchens remained No. 1. Nearly a third (31%) of renovating home owners remodeling kitchens, followed by guest bathrooms (27%) and master bathrooms (24%). Master bathrooms overtook family rooms for the third spot. The median spend on kitchen remodels rose 10% year over year, from $10,000 to $11,000.
Increased Security
Home security integration has grown 50% in two years, reaching new heights of 15% in 2017. Home automation features, such as thermostats and lights also grew in popularity, rising from 19% to 23% in the same time period.
Hiring Process
Homeowners say they consider three general contractors before starting a project, but just two design specialists. Roughly 88% of homeowners hire a remodeling professional for renovation needs.
