If it feels like home renovations are on the rise, it’s because they are. With inspiration and DIY ideas filling up social feeds, homeowners are more motivated than ever to roll up their sleeves (or hire a professional) to create the home of their dreams. But what exactly is going on in the world of home improvements? Here are five things we learned from digging into the 2018 Houzz & Home Study on home renovation trends.
1. A large percentage of homeowners are renovating.
Houzz reports that 58 percent of homeowners renovated their homes in some form or fashion in 2017 — at a median spend of $15,000.
2. Home renovators are becoming increasingly intentional with spending.
Not only did Houzz notice more households renovating last year than previous years, but renovators were also more intentional about their spending.
- In 2017, homeowners were 12 percent more likely to have set renovation budgets than in 2015.
- 77 percent of renovators set budgets in 2017, compared to 69 percent in 2015.
As we all know, setting a budget is the easy part of the equation; staying within the budget is much more difficult. (We’re just going to leave Mr. Cooper’s tips on how to build a budget right here.)
3. Not shockingly, homeowners continue to exceed their set budgets.
Last year, 46 percent of homeowners who had set a budget later exceeded it, which is only slightly higher than the percentage from 2015. Also keeping consistent with previous years: Most of the households that exceeded budgets did so by less than 25 percent.
4. Products and materials costs cause renovators to spend more than initially projected.
In 2017, 42 percent of homeowners made the decision to invest in more expensive products once renovations were already underway.
- 41 percent of renovators discovered products and materials to be more expensive than they originally projected.
- Around 30 percent of those who went over budget did so because they changed their mind about the plans or project.
- Less than 25 percent of homeowners who exceeded their budgets cited unexpected construction-related issues as a primary reason for the added expense.
5. Most home renovators pay with cash.
If a home renovation is in your future, you’re likely already figuring out how to cover the costs. And if you align with the home renovation trends within Houzz’s research — 85 percent of last year’s renovations were paid for in cash or savings — you might need some cash to do it. What other ways do homeowners generally pay? Well, 33 percent of renovators used credit cards for payment and 11 percent used secured home loans, like a home equity line of credit.
If your home needs some makeover-ing and you have some equity built up, you might be able to leverage that equity to pay for things like home renovations. Your best bet? Speak to a Mr. Cooper pro to learn more about your unique options.