Surge in Kitchen Remodel Spend: Kitchens remained the most popular and most expensive room to renovate in 2018. In fact, financial investment in a typical (median) kitchen renovation jumped 27% in 2018, to $14,000, following a 10% increase in 2017. Median spend on guest and master bathroom remodels, the second and third most popular rooms to renovate, grew by 17% and 14%, respectively.
Overall Renovation Spend Remains Steady: Nationally, a typical (median) homeowner on Houzz plans to spend $10,000 on home renovations in 2019, in line with the previous three years. Furthermore, the median total spend on 2018 renovations held steady at $15,000. Interestingly, the share of homeowners investing less than $5,000 on home renovations ticked up from 16% in 2017 to 19% in 2018.
Local Markets in Flux: Half of the largest 50 U.S. metropolitan areas (by population) saw a decrease in median spend on 2018 renovations. In fact, among these 50 metros, seven of the top 10 cities with the highest median renovation spend in 2017 saw a spend decline in 2018, including Boston, Houston, Los Angeles, Miami, San Diego, San Jose and Seattle. San Francisco and San Jose still lead in spend nationally.
Gen Zers Enter the Reno Market: Baby Boomers (ages 55 to 74) and Gen Xers (ages 40 to 54) combined represent 81% of renovating homeowners, with a 2018 median spend of $15,000 each. Millennials (ages 25 to 39) account for 14% of renovating homeowners, with a $10,000 median spend. Gen Zers (ages 18 to 24) account for only a small share of the renovation market (0.3%) and have the lowest median spend ($7,000).
Security, Smart Tech and Decorating Galore: Security upgrades continue to gain popularity, with an average annual uptake growth of 20% over the past three years and a median spend of $500 in 2018. Millennials are embracing security upgrades at a higher rate than Baby Boomers (24% versus 15%, respectively). They are also more likely to prioritize smart technology, such as smart thermostats, and are avid decorators post-renovation.