2023 Renovation Trends
Homeowners Renovate for the Long Term: More than three-quarters of homeowners (61%) stated that they intend to stay in their homes for at least 11 years after their renovation in 2022. Furthermore, the proportion of homeowners renovating with the intention of selling their homes soon has dropped by half since 2018 (6% this year vs. 12% in 2018).
Renovation Activity Continues: In 2022, nearly 3 in 5 homeowners (58% and 57%, respectively) remodeled or decorated, and nearly half (48%) made repairs. In 2022, the median spend for home renovations was $22,000, while the median spend for higher-budget updates (with the top 10% of spend) was $140,000 or more. Renovation activity is expected to continue in 2023, with more than half of homeowners (55%) planning projects this year and a median spend of $15,000 (or $85,000 for larger-budget projects).
Kitchens and bathrooms are the most popular areas to renovate (72%), and homeowners work on an average of nearly three interior projects at the same time. Kitchen and bathroom remodeling continues to be the most popular projects, with a higher share of homeowners upgrading these spaces in 2022 (28% and 25%, respectively) than in 2021 (27% and 24%, respectively). The median spend for kitchens and primary bathrooms is also $20,000 and $13,500, respectively.
Hiring Increases for Construction and Design Professionals: While homeowners hired specialty service providers the most frequently in 2022 (46%), construction professionals — such as general contractors and kitchen or bathroom remodelers — came in second (44%). The proportion of homeowners who used construction professionals increased by 6 percentage points (from 38% in 2021 to 26% in 2022), as did the proportion who used design-related professionals (from 20% in 2021 to 26% in 2022).
Baby Boomers Continue to Lead in Renovation Activity: Baby boomers continued to lead in renovation activity (59%), followed by Gen Xers (27% and 9%, respectively). Nonetheless, in 2022, Gen Xers surpassed Baby Boomers in median spending for the first time ($25,000 versus $24,000, respectively).
Aging Homes Demand System Upgrades: As the median home age in the United States continues to rise, homeowners are focusing on home system upgrades. In 2022, nearly one-third of all homeowners will have upgraded their plumbing, with electrical and home automation following closely behind (29%, 28%, and 25%, respectively). After remaining stable at 24% for the previous two years, electrical upgrades increased by 4 percentage points in 2022. Cooling and heating systems commanded the two highest median spends in 2022 ($5,500 and $5,000, respectively), and are undertaken by more than one in every five renovating homeowners.
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