First-time home buyers are showing a strong desire for taking on remodeling projects. First-time buyer renovators in 2016 spent $33,800, on average, on their projects. That marks a 22 percent increase over 2015, according to the sixth annual Houzz & Home survey of more than 100,000 respondents in the U.S.
Average Investment in Living Spaces
Here is what remodelers spent in renovating their homes in 2016:
- Kitchens: $19,100
- Master bathrooms: $11,700
- Living/family rooms: $5,400
- Master bedroom: $3,400
- Laundry room: $2,800
- Dining rooms: $2,600
- Guest bedrooms: $1,900
Source: “Houzz & Home Survey,” Houzz (May 4, 2017)
“Younger and cash-constrained first-time buyers are responding to the low inventory of affordable homes by purchasing properties that require more than just cosmetic upgrades,” says Nino Sitchinava, Houzz principal economist. “Not surprisingly, we are seeing their spending on home renovations increasing significantly in 2016 and expect this trend to continue through 2017.”
Both first-time and repeat buyers are taking on larger scope projects, such as remodeling up to four rooms at the same time, the Houzz survey shows. Kitchen and bathrooms continue to be the most popular rooms in the house to renovate.
And while “recent home buyers drive a significant share of home renovations today, repeat buyers are investing twice as much in their home as first-time home buyers,” Sitchinava notes.
Baby boomers and earlier generations, who are age 55-plus, continue to spend three time more than millennial homeowners aged 25 to 34.
Overall, homeowners spent $60,400 in 2016 on home renovation projects, up from a $59,800 average in 2015.