Property Renovation increasingly popular way of investing in property

While renovation activity remains consistent with 48% of homeowners having taken on a renovation project in 2023, this is down a percentage point from last year.

Gen X-ers (aged 40 to 55) spent the most on renovation projects for the second consecutive year, with their median spend at £22,000, compared with Millennials and Baby Boomers at £15,000 and £16,000, respectively.

The top 10% of spenders in these groups allocated substantial budgets, with Gen Xers at £200,000 and Baby Boomers at £180,000. While Gen X leads in spend, Baby Boomers continue to drive renovation activity (54%), followed by Xers (34%) and Millennials (12%).

“Despite economic headwinds, investment in home renovations continued in 2023. Gen Xers, in particular, continued to lead the charge in spending,” says Marine Sargsyan, Houzz staff economist.

“As homeowners finally had the means to upgrade their spaces, the reliance on professional help remained strong. Looking ahead, nearly half of homeowners are now planning renovations, highlighting a strong enthusiasm for enhancing living spaces.”

Along with this substantial investment, nearly all renovating homeowners enlisted the help of a home professional in 2023 (93%), with specialty service providers such as electricians (59%), and plumbers (52%), hired most frequently.

Investors are also taking the time to both plan and save for their projects. Renovation planning is typically double the time the actual construction takes. Plus, “finally having the financial means” is the project catalyst for more than a third of renovating decisions.

Investors consistently undertake multiple renovation projects simultaneously. Renovating homeowners on average target nearly three interior room upgrades and two or more outdoor projects during their renovations.

Bathrooms continue to lead as the most commonly renovated interior room (29%), closely followed by kitchens and living rooms (26% each). Following last year’s significant jump in median spend for bath and kitchen projects, these renovations saw increases of 39% and 16%, respectively, reaching £7,300 for bathrooms and £15,100 for kitchens in 2023.

Following a brief drop, outdoor project activity rose 17 percentage points in 2023 (51%, compared with 34% in 2022). Outdoor lighting is the most commonly updated outdoor system (28%). Security systems follow (15%, up nearly two percentage points from last year), as homeowners install cameras and sensors around their properties.

The annual Houzz & Home Study is the largest survey of residential renovating, building and decorating activity published.

The survey covers a wide range of renovation projects in 2023, from interior renovations and additions to home systems, exterior upgrades and outdoor projects. Data gathered includes historical and planned spends, professional involvement, motivations and challenges behind building, renovation and decorating projects, as well as planned activities for 2024.

The 2024 study includes more than 1,779 respondents in the UK alone.

The full report is available here.