Rising property prices are pushing homeowners to find new ways to achieve their dream home.
Unable to afford the upgrade to a larger property, more and more homeowners are instead choosing to renovate their existing property – spending an average of almost $70,000 while they’re at it, according to new research.
The ‘Houzz and Home’ report from Houzz has revealed that renovation appears to be the only option left for many owners if they wish to stay in their preferred area and still have a home they love.
Of the 14,000 Australian respondents surveyed, over half (56%) said they had renovated their home last year and a further 49% planned to do so in the coming year.
Almost half of renovators chose this route in order to be able to stay living on the same block, since upgrading to a more suitable home in the same area proved financially impossible.
For about a third, it meant they could stay in the same neighbourhood, and 29% said they chose to renovate because it seemed more affordable than all the costs associated with moving home.
Nino Sitchinava, principal economist at Houzz, commented that the results had been notably different for each generation of homeowners. Millennials, for example, are mainly driven by financial concerns.
“Interestingly, while the generation of homeowners between the ages of 24 and 34 still comprise a small share of the homeownership population, we’re finding that they are quite active when it comes to home upgrades, and are eager to make their homes their own,’’ Mr Sitchinava said.
POPULAR RENOVATION PROJECTS
- Kitchens 26%
- Living/family room 25%
- Bedrooms 20%
- Master bedrooms 19%
- Upgrading plumbing 32%
- Upgrading electrical 31%
- Upgrading cooling 19%
Clearly not all renovators did their sums carefully, though. According to the study, around one third didn’t bother to create a budget at all before the work began, and about 27% of those who did have a budget ended up going over it. The main reason for this was that they decided to upgrade the products and materials involved.
The average amount spent on renovations in 2015 was $68,300. Kitchens proved to be the most expensive job, while the average bathroom revamp cost $16,440.