Renovation Budgets Are Climbing: Where Did Homeowners Spend Their Money In 2020?
August 18, 2021
For Buyers & Sellers
2020 will forever be remembered here in Chicagoland and around the country as the year when home became much more than home. Over the last year, our homes have served as offices, schools, movie theaters, gyms, and restaurants, among other things — and all this time at home led to a significant amount of interest in renovating and improving the spaces we know and love.
Data suggests that homeowners spent a great deal of time and money improving their homes in 2020. So, as home renovation budgets soared, how did homeowners spend their renovation dollars last year? And where will they spend that money going forward?
Home Improvement, By the Numbers
According to Angi's 2020 State of Home Spending Report, 41 percent of homeowners cited making their homes more suitable for their lifestyles as a major driver of renovation projects in 2020. Because of the pandemic, 86 percent of homeowners said that they were spending more time at home — which means that instead of spending money outside the home, homeowners have focused on making their homes work for them. Angi also found that the total amount spent on renovations increased year-to-year over 2019. In 2020, the average amount spent on a home improvement project increased to $13,138 from an average of $9,081 the year prior. So, where have homeowners been putting their focus — and their dollars?Maintenance Projects
With more time spent at home comes more wear-and-tear, and more time to notice all of the little projects that need to be done. Indeed, nearly two-thirds of homeowners confirmed that being home more often caused them to notice more home maintenance projects that needed to be completed. The cost of materials and labor were also higher in the last year, as shortages affected supply and drove costs upward. As a result, it makes sense that homeowners spent more on home maintenance projects in the last year — with people spending an average of $3,192 last year on maintenance projects, including landscape maintenance. On average, homeowners completed an average of two maintenance projects, 3.4 landscaping projects, and 2.1 cleaning projects.Painting
Interior painting projects were by far the most common home improvement activity in 2020. 35 percent of households undertook at least one interior painting project last year. It's no surprise that painting was so popular; painting is the ultimate DIY way to transform a space without having to hire an expensive professional's services. Painting a room doesn't require the uncertainty of having workers in and out of the home in the time of Covid, and the materials required are relatively inexpensive. The average interior painting project costs around $2,000, according to data from HomeAdvisor, making painting an attractive and low-cost way to make a big difference in the look and feel of any room.Flooring
Flooring projects were also popular in 2020, with 20 percent of remodeling households taking on a flooring project. Like painting, flooring is relatively low-cost, with the average flooring project costing just over $4,500, per HomeAdvisor. Refurbishing worn or outdated flooring is a popular choice among homeowners, providing a striking visual impact without requiring a large budget.Outdoor Upgrades
Updates and improvements to homeowners' outdoor spaces were unsurprisingly popular in 2020 as public spaces such as parks, restaurant patios, and gardens were closed by the pandemic — causing homebound homeowners to upgrade the outside areas right in their own backyards (literally). According to the 2021 Houzz & Home Overview of U.S. Renovation study, outdoor projects jumped in popularity in 2020, with 57 percent of homeowners who renovated undertaking an outdoor project. Among the most popular of those projects were upgrades to flower beds, borders, and lawns, alongside deck, porch, and balcony upgrades, as well as exterior painting projects, roofing, and window upgrades. Homeowners also chose to upgrade their outdoor lighting, with exterior lighting projects comprising 21 percent of outdoor systems projects, followed by home security systems and irrigation projects.Bathroom And Kitchen Remodels
Bathroom remodeling remained the most popular room remodel in 2020, with 31 percent of remodeling households undertaking a bathroom renovation. With the average bathroom remodel costing between $6,000 and $15,000, a bathroom renovation is an achievable way to make a big difference in the value and functionality of a home. However, when asked where they would most like to undertake a home renovation project, homeowners tended to wish they could renovate their kitchens. If given $10,000 for home improvement, 27 percent of homeowners say that they would spend it in the kitchen.High-Tech Home Features
Smart home features are in-demand among buyers — so it's no surprise that homeowners also focused a great deal of attention on improving the technological capabilities of their homes in 2020. For instance, homeowners forced to work from home due to the pandemic focused on making home office upgrades. Younger homeowners — millennials specifically — were far more likely than other groups to renovate and improve their home offices. Homeowners also leaned into smart home technology. According to the Houzz & Home survey, streaming media players and smart TVs experienced the greatest growth among smart technology projects, but more homeowners also invested in security cameras, smart lighting, and sophisticated outdoor sound systems than in previous years. Although these projects still make up a relatively small percentage of total renovation projects, it is clear that smart home technologies are becoming more popular, especially among younger homeowners, and demand for these technologically advanced features will only continue to increase in the years ahead.When Home Means More, You Need a Team With More to Offer
Is your home working for you? For many of us, the way we think about our homes has changed — and that might mean you're ready to make a move to find one that better fits where you are now. Home is about so much more than just four walls. Buying or selling a home is a big deal, and with everything we experienced in 2020, our homes have never been more important. That's why your local Baird & Warner agent is with you at every step of the way, from finding the perfect home to connecting you with local experts in mortgage and title. Whether it's the beginning of a story or the end of a chapter, we're here to help.Tags:
