Homeowners investing in kitchen renovations

Australian property owners are investing more in their kitchens as renovation spending on kitchen projects increases by a third.

The latest Houzz & Home survey found that the kitchen was still high on the list of priorities for renovators over the past year. The average spend on kitchen projects increased 33% to $ 20,000.

This contributed to the overall increase in home renovation spending, which rose 5% to a median of $ 21,000.

Top renovation projects

For more than half of Australians who renovated their kitchens, changing the layout was a top priority.

Around 40% of property owners have also upgraded their plumbing and electrical systems, including changes to heating, ventilation and air conditioning systems.

  • Frame and add walls
  • Expansion of the kitchen size
  • Exchange of all devices
  • Install new countertops, faucets, faucets, cabinets, back panels and sinks

Bathroom renovations were the second top priority for many renovators, with the average spend rising to $ 15,000.

While many Australians turned their attention to interior renovations, about three in five property owners began renovating their outdoor spaces as well.

The main concern of many of these property owners has been the poor layout of these outdoor areas making it difficult to work, play or entertain in them.

To address this issue, the property owners have made improvements related to the grounds, beds and borders, fences, patios and decks.

Who spends the most on renovations?

Across the generations, millennials reported the largest increase in average home renovation spending, up 83% to $ 22,000.

Generation Xers, which had higher median spend in the past, only had a median budget of $ 20,000.

Baby boomers had a slightly higher average renovation among all generations at $ 22,600.

Still, Generation X beats Millennials in terms of the top 10 total spending on projects, which hit $ 200,000 for the former and $ 79,000 for the latter.

Around four in five renovators mainly used cash and savings to fund their renovation projects.

A smaller proportion of renovators used their credit cards (13%), cash from previous home sales (12%), mortgage refinancing (10%), gift and inheritance (6%) to fund their projects.

Houzz managing director for Australia and New Zealand Tony Been said with property owners stuck at home due to the pandemic, a larger proportion said they already had the opportunity to execute on their renovation plans.

“While the pandemic has sparked initial concern in the home renovation industry, last year many homeowners finally had the time and financial resources to move forward with long-awaited projects,” he said.

“This backlog, combined with longstanding market fundamentals, enables homeowners to continue investing in their current homes.”

About a quarter of homeowners found renovation to be a cheaper option than finding a home that met their needs.

Photo by Jason Briscoe on Unsplash.

Top suburbs: Dulwich Hill, Geelong West, Glennning, Newtown, Alexandra Hills

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