2022 Home Improvement Report

American homeowners have spent more than half a trillion dollars on home improvement projects in recent years, but they say inflation and a possible recession will be factors in how much they build next.

From 2019 to 2021, American homeowners undertook about 135 million home improvement projects, spending about $624 billion, according to the latest American Housing Survey from the US Census Bureau. That’s an increase of about $100 billion in home improvement spending over the previous survey period (2017-2019).

This two-year period began before any of us knew the COVID-19 pandemic was coming, and it stretched through lockdowns and ambitious DIY projects stuck at home and into a housing market where houses – even those in poor condition – selling for a while. mint Any of these factors can influence how people spend money on improving their homes. There is little doubt that all of them did.

“The pandemic has caused a lot of home improvements,” says NerdWallet home and mortgage expert Holden Lewis. these developments have led to renovations, whether making homes more livable or preparing them for sale.”

In this third of NerdWallet’s biennial Home Improvement Report, we analyze the latest American Housing Survey data covering 2019 to 2021, when homeowners were asked between May 3 and September 30, 2021, about their projects during the “two a year before.” We combine this with results from a nationally representative NerdWallet survey conducted online by The Harris Poll from September 27-29, 2022, asking 1,404 homeowners about their home improvement activities and attitudes.

This year’s report includes:

Key findings

Home improvement projects and spending increased significantly. The number of home improvement projects increased by 17% to 134. This may interest you : Home Improvement Theory: Wilson is under the protection of witnesses.8 million in the period 2019-2021. Spending increased 20% to $624 billion, according to data from the American Housing Survey.

Homeowners DIY nearly 53 million of their projects. Do It Yourself, or DIY, projects accounted for 39% of total projects and 20% of total spending in the two-year census survey period.

The share of homeowners “easily” able to pay for improvements declined. Less than half (42%) who took on home improvement projects in the past two years say they were able to easily pay for most of them without having to save, go into debt or make sacrifices. according to a recent NerdWallet survey. That’s down from 52% who said the same thing when we asked in 2020.

Most of the planned improvements are not aimed at potential home buyers. Only 20% of homeowners who are considering home improvements in the next two years say it is to make their home more attractive to potential buyers. Instead, the most commonly cited reasons are to make it more comfortable (54%) and to be more satisfied with it (52%), according to the survey.

Upcoming projects may affect the economy. While homeowners expect to spend, on average, $7,746 on home improvement projects over the next two years, inflation (44%) and whether we’re in a recession (27%) are just some of the economic factors affecting them. role in many of their decisions, the survey found.

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The state of home improvements

Homeowners spent $624 billion on home repair and improvement projects during the two-year period covered by the 2021 American Housing Survey. See the article : 8 Home Improvement Projects That Add Instant Value To Your Home. This represents a doubling, from about $300 billion, in just ten years.

Considering current inflation, it would be easy to write off this increase as a matter of higher costs, but it is not: The number of projects during this period increased from approximately 94 million in the 2013 survey to 134.8 million in 2021 — an increase of 44%.

From the 2019 census survey to the 2021 survey, total projects increased by 17% and spending increased by 20%.

The projects cost, on average, $4,838 during the 2021 survey period. The most expensive among them were kitchen renovations, which cost an average of $33,190, and the most affordable were security system installations, which were $754 on average.

Early in the pandemic, when people were newly locked in their homes, there was an explosion in home improvement projects. But before this, and after people started returning to work, this action slowed down.

In fact, when we asked homeowners in September 2020 about their home improvement projects in the past two years, 26% said they took on such projects because they were spending more time at home due to measures social distancing associated with a pandemic. This year, only 17% of homeowners say they took on home improvement projects in the past two years because they were spending more time at home due to pandemic-related issues.

Helpful tip for the homeowner: The home improvement projects you do when you spend more time at home aren’t necessarily the same projects you do on a typical weekend. A week or three at home can be a great time to update your bathroom – it can even be a fun project – but finding time for repairs and maintenance can be harder and harder exciting. Make sure you are setting aside money and time for these more common activities. Although you can’t be proud of walking with your gutters clean, the type of smaller project that can save you money on your own home is to clean the clogs that can cause damage of rainwater.

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DIY vs. pro

One in 4 homeowners (25%) say they’ve taken on DIY home improvement projects in the past two years because they enjoy that type of work, according to our survey. But that wasn’t the only motivation for collecting power tools – 15% of homeowners say they took on DIY projects during that time because they couldn’t afford to hire a professional, while 9% say that they did it because they couldn’t. This may interest you : Cheapest U.S. Cities With the Most Home Inventory. find a contractor to do the work for them.

The census survey shows a slight increase in the share of DIY projects, perhaps partly driven by the shutdown of the pandemic in 2020.

In the most recent census survey period (2019-2021), about 53 million, or 39%, of home improvement projects were DIY, compared to 37% in the previous two-year period. Spending on these projects accounted for 20% of the total amount spent on home improvements during the two-year period. The average amount spent on a DIY project was $2,500, versus $6,350 for a professional job.

A helpful tip for the homeowner: “Doing your own home improvement work can save you money, but don’t be overzealous,” warns Lewis. “It might be fun and cheaper to take a sledgehammer to the wall yourself, but if you find out it was a load-bearing wall you might feel like comic relief on a home improvement show while cost you a lot. .”

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Paying for it all

Less than half (42%) of homeowners who have taken on home improvement projects in the past two years say they were able to pay for most of them easily without involving savings, going into debt or making sacrifices do, according to a recent NerdWallet survey. . That’s down from 52% who said the same thing when we asked in 2020.

But these projects can be expensive, and 20% of homeowners who have taken on such projects in the past two years have had to make sacrifices such as cutting back on discretionary spending or selling items, 14 % tapping or draining emergency savings, 12%. they had to take on debt such as loans or credit card debt, and 8% was borrowed against the equity in their home to pay for most of the work.

Cash is king when it comes to home improvements—78% of projects were paid for primarily with cash during the census survey period, according to the 2021 American Housing Survey. But few homeowners have a deep well to draw from, therefore financing options usually change as projects become more expensive.

Handy homeowner tip: Weigh your home improvement financing options carefully. Cash doesn’t cost anything in the form of interest, but it could mean reducing your savings. Other types of credit — credit cards, home equity financing options and personal loans, for example — come with variable interest, fees and payment terms. Ideally, you have saved up and can fully finance your project. But if that’s not the case, choose your financing option after considering all the costs and benefits.

What to expect: Upcoming projects

What to expect: Upcoming projects

Nearly all homeowners (95%) are considering taking on home improvement projects within the next two years, according to a NerdWallet survey. And while many are planning small projects – 42% are thinking about painting a room and 25% updating light fixtures – about half (51%) say they are thinking about renovating or adding to a room . Almost a quarter (22%) are looking at renovating the kitchen, while the same percentage (22%) are thinking about renovating or adding to a bathroom.

When asked why they are considering taking on these projects, only 1 in 5 (20%) of those who will be considering taking on home improvement projects in the next two years said it is to make a home more attractive to potential buyers. Meanwhile, 54% say it’s to make their home more comfortable for them and their family, 52% say it makes them feel happier with their home and 33% say it’s because their home needs updates to be safe or functional.

For inspiration for their home improvement projects, 40% of homeowners say they look to content online, more than any other source.

Costs and economic considerations

Costs and economic considerations

Homeowners expect to spend $7,746 on home repair and improvement projects in the next two years, on average, with nearly a quarter (24%) expecting to spend $10,000 or more, according to the NerdWallet survey. That’s up from a projected average spend of $6,251 when we asked in 2020.

But given the current state of the economy, they know there will be things to contend with, factors that could affect their ability to spend on projects or complete them. When asked what factors will play a role in their decision if and when to undertake projects in the next two years, 44% of homeowners cite inflation, 38% the ability to purchase supplies, 30% the ability to find a contractor to do the work. , 30% on the housing market and 27% whether or not we are in a recession.

Many (39%) hope to plan projects in the next two years to specifically save them money, and around one-third (34%) plan to use a credit card.

Millennial homeowners (ages 26 to 41) are more likely than other generations to say they intend to use a credit card to spend money on home repair and improvement projects in the next two years: 45% compared to 32% of Generation Z (age 18). -25), 32% of Generation X (age 42-57) and 28% of baby boomers (age 58-76).

“Many homeowners will be living in their current homes longer than originally planned, because they won’t want to deal with a high mortgage rate on their home moving up,” says Lewis. “Instead, owners will wait and ‘move up’ by improving their existing homes. When they do, they will do themselves a favor by scoping out the most cost-effective way to pay.”

The Harris Poll conducted this online survey within the US on behalf of NerdWallet from September 27-29, 2022, among 2,047 US adults aged 18 and older, including 1,404 homeowners. The sampling accuracy of the online Harris poll is measured using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level. For full survey methodology, including weighting variables and subgroup sample sizes, contact Alikay Wood at [email protected]

The American Housing Survey is released every two years. For the latest issue, interviews were conducted between May 3 and September 30, 2021, and homeowners were asked about the home improvement projects that had been done on their homes “in the past two years.” Respondents could have interpreted that as from January 2019 or mid-2019.

The AHS asks homeowners to self-report how much they spent on projects in various categories. Apart from defining what constitutes remodeling versus renovation, the survey does not break projects out by scale, scope, quality of materials or finish.

The AHS data used in this report is specific to owner-occupied households.

The AHS measures project expenditure. For the purposes of this analysis, project “costs” and “expenses” are used interchangeably.

What home trends are out for 2022?

10 Home Design Futures Leaving in 2022

  • Open Concept Homes. …
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  • Mosaic tiles.

What is replacing shiplap 2022? Custom Arches The Shiplap Trend of 2022 – PureWow.

What is the new trend in home decor for 2022?

In keeping with the trend of bringing the outside in, in 2022, we will see a focus on natural materials such as burl, rattan, cane, leather, jute, wicker, ceramics, and woven lighting, furniture and decor.

What is the next decorating trend?

Introduce plenty of texture elements. The organic nature of wood, stone and linen, and the tactile quality and tones that come with it, give the home a warm and inviting feel for 2022. The use of texture in interior design will be at the forefront of our decorating decisions in 2022 and beyond.

What is the decorating trend for 2023?

Warm and Calm Neutrals Jill Elliott, founder of Color Kind Studio, predicts that living room color schemes will change for 2023. â In the living room, we see warm, relaxing blues, peach pins, and sophisticated neutrals like sable. , mushroom, and ecruâtá these really catch my eye for 2023,â she says.

Is wood trim Coming Back in Style 2022?

The warm wood trend First, we’ve seen a lot of wood in our feeds, even the wood paneling of the 70s. While we’ve seen warmer colors coming for a few years, it’s safe to say it’s here going into 2022.

What is the new decorating trend for 2022?

You’ll see lots of curved chairs, sofas with smooth sloping arms, and round poufs in velvet, linen, and nubby boucle fabrics. In addition to natural wood tones and vintage pieces, we will also see the return of black accent pieces. Marble furniture and marble accents will also be popular in 2022.

What color wood is in for 2022?

Transform your home into a place of comfort and relaxation with our 2022 Color of the Year, Gentle Olive.

Is natural wood coming back in style?

While darker stains feel more traditional, lighter woods definitely have a more modern feel. It’s clear that natural woods are becoming the new neutral in interior design, and this design trend isn’t going anywhere as people embrace warmer spaces.

Is it a good time to remodel your home 2022?

Homeowner demand may taper Last year, remodeling spending rose 9% year over year, and is projected to rise 17% this year, according to Will. Historical average annual growth is around 5%.

Will remodeling costs drop in 2022? Therefore, it is more accurate to say that although the rate of increase will eventually slow, it is very likely that remodeling costs will go back lower than it was at the beginning of 2022. In fact, Zillow currently estimates that the housing market will grow. Another 11.6 percent over the next year.

Will remodeling costs go down in 2023?

According to the Joint Center’s Leading Indicator of Remodeling Activity (LIRA), released this summer, year-over-year gains in remodeling spending on owner-occupied homes are expected to decelerate from 17.4% in 2022 to 10.1% by the second quarter of 2023. .

Is 2023 a good year to build a house?

5 Reasons why 2023 is a good time to build your forever home. As stability (Less Price Increases & Greater Product Availability) returns to the housing market in 2023 it will greatly improve the home building experience without the rapid price increases and supply chain issues that have been the norm for the past two years .

Is a recession a good time to remodel?

Historically, recession (or near-recession) seasons tend to be relatively good times to renovate homes because there can be less competition for contractors and materials, you’ll be stimulating the economy and relying on the improvements you are looking for. do, you can add significant value to your…

Is it a good time to renovate your home?

Is Renovation a Good Time? The simple answer is, although the nature of the projects should depend on whether you plan to stay in your home for years or if you’re looking to sell it soon, according to Fisher.

What is the most expensive thing when renovating a house?

Ideally, you should spend no more than 5% of the value of your home on renovations. The most expensive parts of a home renovation are remodeling the kitchen, remodeling the bathroom, replacing the roof, building outdoor areas and adding a central heating or air conditioning system.

What renovation increases the value of a home? Remodeling can increase the return on investment (Republic of Ireland) of a home. Wood decks, window replacement, and kitchen and bathroom upgrades tend to generate the highest ROIs. To recover costs, remodeling projects generally need to fix a design or structural defect to earn back the cost of construction.

Is $100000 enough to renovate a house?

Tell me the average cost of home remodeling? According to HomeAdvisor, remodeling cost was estimated to be around $46,755. If this figure needs to be taken into account homeowners who only do one or two projects at a time. Most homeowners should spend between $100,000 and $200k on home renovations.

What is the most expensive part of a home addition?

The Foundation Pouring a foundation is expensive; it is often one of the most expensive parts of building a house, usually over most of the items on this list. It will be more expensive to pour a larger house foundation. The type of foundations and the climate you are building in will also be important.

Is it cheaper to build up or out for an addition?

Building up is always the least expensive option to increase your home’s square footage because it requires less materials and labor. For example, if you have 1,000 square feet on the main level and want to add 1,000 square feet as a second floor, all you have to do is fabricate more wood and labor.

What part of the house is most expensive?

Interior Finishing It is one of the most expensive parts of building. Interior finishes can make the biggest difference in the prices of materials but can also be the difference in a home such as whether it was built on a budget or built with luxury as a priority.

What is the most expensive room in a house to remodel?

A new report by Houzz reveals that kitchen renovations are still the most popular remodel—and also the most expensive.

What do most home renovations cost?

The average cost to completely renovate a home is $15,000 – $200,0004. Depending on the characteristics of the construction, the price can change significantly. The final price tag usually depends on any structural or mechanical repairs, square footage, foundation issues, location and materials used.

Is 20k enough to renovate a house?

Replacing or refinishing the floor, painting or wallpapering the walls and ceiling, and building or redesigning the closet space are aspects of the master bedroom that have a good return on investment and impact your daily life, says Fisher. Those projects can easily fit into a $20,000 budget.

How do most people pay for renovations?

Home improvement loans and credit cards may work best for smaller repairs, but larger repairs may require a home equity loan or HELOC. Homeowners spent an average of $2,321 on emergency home repairs in 2021. The exact cost depends on the specific repair, as well as the cost and availability of materials and labor.

How much should you spend on renovating your home?

Typically, you can expect to spend at least $10 to $60 per square foot on any renovation. When deciding on your home renovation budget, it can be easier, and more affordable, to prioritize projects by room and build a budget around the cost of each individual project.

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