Kitchen & Bath Design News

SEP 2018

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PALO ALTO, CA — Kitchens and bathrooms, as in the past, top the list of interior remodeling projects being undertak- en by U.S. homeowners, who continue to increase their spending while fueling the current boom in residential remodeling. Those are among the key findings of the "2017 Houzz & Home Renovation Trends Study," the seventh such annual study conducted by Houzz, the Palo Alto, CA-based online platform for home renovation and design. The study, fielded in March and April among nearly 150,000 respondents, addresses a wide range of renovation projects, from interior remodels and additions to home systems, exterior upgrades and outdoor projects. The study concludes, among its other findings, that kitchens and bathrooms retained their popularity both in terms of renovation frequency and spending, with near- ly one-third (31%) of surveyed renovating homeowners tackling kitchens, followed by guest bathrooms (27%). At 24%, master bathrooms overtook living/family rooms as the third-most-popular room to renovate, Houzz said (see related chart at right). New homeowners are more likely to tackle kitchen renovations than long-term homeowners (40% and 39% of first-time and repeat buyers, respectively, versus 30% of long-term homeowners), the company added. The median spend for kitchen remodels saw a 10% year- over-year increase ($11,000 in 2017 from $10,000 in 2016), according to Houzz. A similar increase was seen for major remodels of large kitchens (more than 200 sq. ft.), which increased from a $30,000 median renovation spend in 2016 to $33,000 in 2017, Houzz said. Some living areas also saw increased investment, with median master bedroom spending up 33% ($2,000 in 2017 versus $1,500 in 2016), and median home office spending up 20% ($1,200 in 2017 versus $1,000), while living/family rooms held steady at a $3,000 median spend. Continuing the boom of the past three years, renova- tion activity and spending was strong in 2017, according to Houzz, adding that this year "is on track to be another solid year for home renovations." "All the evidence points to 2018 likely being another robust year for the home improvement industry," said Nino Sitchinava, principal economist for Houzz. "Kitchens and bathrooms continue to fuel spending, while exterior features and systems, such as home security and automation, are on the rise," added Sitchinava. Other key Houzz findings were as follows: • Over the past two years, homeowners have become more deliberate in planning and budgeting for renovations, and were 12% more likely to set a budget in 2017 than in 2015 (77% and 69%, respectively). However, the propen- sity to go over budget varies little over time among those who set a budget (46% in 2017 versus 44% in 2015). • When it comes to funding renovations, cash remains king (85%), followed by credit cards and loans secured by home value (33% and 11%, respectively), including home-equity lines of credit and mortgage refinancing. • While improving a home's design or functionality are the top considerations during renovations (89%), increasing the home's resale value is an important consideration for 69% of renovating homeowners. • "It is not surprising, then, that some of the most frequent renovation projects are also the ones that are perceived to contribute the most to the home's resale value," Sitchinava said. "Specifically, four in five renovating homeowners report that kitchens and master bathroom upgrades increased the value of their home above and beyond any other renovation project. • "In fact, one-third of kitchen renovators believe that their home value has increased by at least the full amount of the project cost post-renovation," the Houzz economist added. • Nearly nine in 10 surveyed homeowners (88%) chose to hire a design professional for their renovation needs. Repeat homebuyers are significantly more likely to hire a design professional, as compared to first-time buyers or long-term homeowners. ▪ Houzz: Home Renovation Boom Continues Source: Annual 'Houzz & Home Renovation Trends Study' KEY RESIDENTIAL REMODELING TRENDS % of Surveyed U.S. Homeowners MOST POPULAR PROJECTS Kitchens Guest Bathrooms Master Bathrooms 31% 27% 24% TOP CONSIDERATIONS FOR REMODELING Improving Design or Functionality Increasing Home's Resale Value 89% 69% BUDGET CONSIDERATIONS Homeowners Setting a Budget Propensity to Go Over Budget 77% 46% MEANS FOR FUNDING PROJECTS Cash Credit Cards Loans Secured by Home Value 85% 33% 11% 12 Kitchen & Bath Design News • September 2018 PUBLISHING SOLA GROUP, INC. 1880 OAK AVE., SUITE 350 EVANSTON, IL 60201 (847) 440-3000 Paul DeGrandis Publisher, ext. 100 Paul@SOLAbrands.com Eliot Sefrin Publisher Emeritus, ext. 113 Eliot@SOLAbrands.com SALES WEST/MIDWEST Paul DeGrandis Ext. 100 Direct (847) 920-9510 Paul@SOLAbrands.com EAST/SOUTHEAST Joanne Naylor Ext. 114 Direct (201) 891-9170 Joanne@SOLAbrands.com MIDWEST Jessica Fidrocki Ext. 117 Direct (847) 386-2177 Jessica@SOLAbrands.com PRODUCT & LITERATURE SHOWCASE/CLASSIFIED ADS Mike Serino Ext. 102 Direct (630) 699-2004 Mike@SOLAbrands.com EDITORIAL Janice Anne Costa Editor, ext. 116 Janice@SOLAbrands.com Anita Shaw Managing Editor, ext. 112 Anita@SOLAbrands.com Autumn McGarr Associate Editor, ext. 104 Autumn@SOLAbrands.com SUBSCRIPTIONS Kitchen & Bath Design News Circulation Dept. 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