Residence Renovation Exercise Stays Robust Amid Softening Spend, Houzz Survey Finds

Greater than half of house owners renovated their properties in 2024 (54%) at a median spend* of $20,000, in response to Houzz
Inc., a platform for residence transforming and design. The 2025 U.S. Houzz & Residence Examine of almost
22,000 U.S. respondents discovered that total median spend dipped from its peak in 2023 ($24,000) although it stays
above 2021 ranges ($18,000). Owners within the high ninetieth percentile spent $140,000 or extra on renovations, down from
$150,000 in 2023. Whereas kitchens and first bogs comply with an identical pattern with softening median spend (kitchens
down 8% yr over yr and bogs down 13%), main remodels** of kitchens and bogs proceed to drive the
market. 

Median spend on main renovations of huge kitchens (200+ sq. ft) and enormous bogs (100+ sq. ft) held
regular at $55,000 and $25,000, respectively. In the meantime, funding in main renovations of smaller areas noticed
notable progress. The median spend for main remodels of small kitchens (lower than 200 sq. ft) rose by 9% to
$35,000, whereas main remodels of small main bogs (lower than 100 sq. ft) elevated by 13% to
$17,000. 

For prime-end renovations (the highest 10% of spending), budgets broaden significantly. Giant, upscale kitchens begin at
$150,000, whereas small luxurious kitchens start at $90,000. Equally, householders are investing no less than $70,000 when
renovating giant luxurious bogs and $45,000 or extra in smaller high-end bogs.

“The softening in renovation spend displays the impression of elevated borrowing prices and the rising costs for
on a regular basis items and providers, which restrict how a lot householders can allocate towards residence enhancements,” stated
Marine Sargsyan, Houzz workers economist. “What stands out, nonetheless, is householders’ ongoing demand and
constant funding in sizable kitchen and loo upgrades. Maybe much more telling, notable progress in spend
on smaller areas alerts that even amid financial pressures, householders are prioritizing significant enhancements no
matter the dimensions of the house.”

Skilled hiring stays widespread throughout mission sort and dimension, with 9 in 10 householders selecting to work with a
professional (90%). Almost half of renovating householders rent specialty service suppliers (49%), up from 46% in 2022.
Owners additionally flip to basic
contractors, builders and inside designers for his or her
steering and execution. When planning a renovation, householders can discover and rent constructing, transforming and design
professionals utilizing Houzz
Professional for a standout expertise.

Funding Sources Shift for Larger-end Initiatives

Owners most incessantly faucet into their financial savings for renovation initiatives (84%). Bank cards stay the second most
frequent financing technique, although their recognition has declined by 8 share factors from final yr, now at 29%.
Secured residence loans funded 1 in 8 initiatives (12%), with Residence Fairness Traces of Credit score (HELOCs) being the commonest
(6%), adopted by cash-out refinancing and basic residence fairness loans (3% every). 

Secured residence loans are extra frequent amongst householders with higher-end renovations starting from $50,000 and $200,000
(18%). In the meantime, these enterprise luxurious renovations are almost twice as probably to make use of money from current residence gross sales
(19%) in contrast with householders throughout all mission ranges (10%). 

Lengthy-term Dedication to Our Houses

Greater than half of renovating householders maintain full fairness of their properties (56%) they usually’re dedicated to dwelling
there long-term with 3 in 5 planning to remain put for no less than 11 years following their mission (61%). Pent-up demand
continues to be the strongest motivator for residence upgrades, with householders reporting they lastly have the time and
means to pursue a renovation (40% and 35%, respectively). 

Generational Renovation Insights*** 

Child Boomers and Gen X householders proceed to steer in renovation exercise (59% and 29%, respectively), with an identical
spend to the nationwide median of $20,000 every. Although representing a smaller share of renovators, Seniors outpaced
each generations in median spend at $22,000. Gen X renovators are the probably to bear luxurious initiatives with
the highest 10% of house owners exceeding nationwide ranges and spending $150,000 or extra, adopted by Child Boomers and
Millennials at $125,000 or extra every. 

In the meantime, renovating Millennials are gaining tenure in homeownership, with a 5 share level enhance in these
who’ve lived of their properties for six or extra years (36%). Whereas median spend amongst this group is $15,000,
funding in kitchen renovations has grown year-over-year (from $15,000 in 2023 to $20,000 in 2024), in comparison with
older generations who’ve reduce on kitchen renovation spend.

Out of doors Initiatives Supply Aesthetic and Purposeful Enhancements

Greater than half of renovating householders (53%) enhanced their outside areas in 2024, finishing almost two outside
initiatives on common. Whereas aesthetic enhancements are frequent, many owners are additionally making practical upgrades.
Probably the most incessantly tackled initiatives embody work on beds and borders (29%), lighting methods (23%) and safety
methods (18%). Moreover, householders are investing in hardscape and structural options, with decks being the
commonest outside construction mission (14%), adopted by sheds/workshops (8%) and gazebos/pergolas (7%). Though
built-in outside kitchens stay a distinct segment function (3%), their recognition has proven a slight uptick from 2% in 2023.

* Median spend is the midpoint stage, that means half of renovating householders on Houzz spent extra and half spent much less.

** Main kitchen rework refers to a rework by which no less than all the cupboards and home equipment are changed. Main
main toilet rework refers to a rework by which no less than the cabinetry/vainness, counter tops and bathroom are
changed.

*** Generational classes comply with Pew Analysis Heart’s age ranges: Gen Zers (18-26), Millennials (27-42), Gen
Xers (43-58), Child Boomers (59-77) and Seniors (78+). 

The Houzz & Residence Examine

The annual U.S. Houzz & Residence Examine is the biggest survey of residential transforming, constructing and adorning
exercise revealed. The survey covers a variety of renovation initiatives in 2024, from inside remodels and
additions to residence methods, exterior upgrades and outside initiatives. Knowledge gathered consists of historic and deliberate
spends, skilled involvement, motivations and challenges behind constructing, renovation and adorning initiatives, as
properly as deliberate actions for 2025. The 2025 research consists of almost 22,000 respondents within the U.S. alone, offering
insights into the house enchancment exercise of the tens of millions of customers of the Houzz web site and cellular apps. 

The 2025 U.S. Houzz & Residence survey was despatched to registered customers of Houzz and fielded between January and February
2025. 

The complete report is on the market right here.

Houzz has over 25 million pictures of professionally
designed interiors and exteriors, together with accomplished kitchen and toilet initiatives, and greater than 3 million residence
transforming and design professionals together with architects, inside designers,
basic contractors
and design-build companies.
Houzz Professional offers trade professionals with a enterprise administration
and advertising SaaS answer that helps them run their initiatives effectively and profitably whereas delivering an
excellent shopper expertise, together with estimates, CRM, mission administration and
extra. 

About Houzz

 Houzz is the main platform for residence transforming and design, offering an all-in-one software program answer for trade
professionals and instruments for householders to replace their properties from begin to end. Utilizing Houzz, folks can discover
concepts and inspiration, rent professionals and store for merchandise. Houzz Professional (houzz.com/professional) offers residence trade professionals with a enterprise
administration and advertising SaaS answer that helps them win initiatives, collaborate with shoppers and groups, and run
their companies effectively and profitably. The Houzz group is made up of tens of millions of house owners, residence design
fans and residential enchancment professionals world wide. Houzz is on the market on the net and as a top-rated
cellular app. For extra info, go to houzz.com. Houzz is a
registered trademark of Houzz Inc. worldwide.