Renovation Spending is Up Among First-Time Home Buyers and Millennials

First-time home buyers and millennials are spending more on home renovation projects, according to the sixth annual Houzz and Home survey. In one of the largest increases seen this year, renovators who bought their first home in 2016 spent $33,800 on average, 22% more than in 2015. Baby Boomers and older generations (55+) continue to spend roughly three times more than millennial homeowners (25-34), however Millennials invested an average of $26,200 in 2016, 7% more than they spent in 2015. Investment in home renovation overall remains strong as homeowners spent $60,400 on average on 2016 renovations, in line with 2015 ($59,800 on average).

Over half of homeowners on Houzz (52%) are planning to begin or continue renovations in 2017, consistent with plans for 2016. Homeowners plan to spend an average of $27,300 on home renovations in 2017, a 4% increase from planned spend in 2016 ($26,400). Both first time and repeat buyers are also taking on large-scope projects, remodeling nearly four rooms at the same time, on average. Scope is slightly smaller for long-time homeowners (those who have been in their home for 6 or more years), who average 2.5 rooms during renovation and/or addition projects. Kitchens and bathrooms, which continue to command the lion’s share of renovation spend, are significantly more likely to be renovated than any other room of the home.