One in seven homeowners has put their home renovation project on hold (15 percent), according to a new study from Houzz Inc. Conducted in August 2023, the survey of more than 2,500 U.S.-based homeowners found that the top reasons for postponing projects include budget constraints, inflation, and a lack of project urgency (46 percent, 42 percent, and 38 percent, respectively). That said, nearly one-third of respondents completed a project in 2023 (31 percent) and more than half are either in the middle of a renovation project (25 percent) or planning to start one by the end of next year (27 percent). Fewer than 1 percent of homeowners report having canceled a home improvement project in 2023.
Many homeowners prefer home renovations to moving, with nearly two-thirds of respondents wanting to stay in their current home rather than buy a new home that fits their needs (63 percent). Homeowners attribute this to financial reasons, including that renovating is more affordable and a better return on investment (22 percent and 21 percent, respectively), and already having a lower mortgage rate than is available (19 percent).
“The demand for home renovations continues, but the industry is not immune to challenges posed by a volatile national economy,” said Marine Sargsyan, Houzz staff economist. “Faced with inflation and rising interest rates, many homeowners have been forced to reevaluate their ability to pursue immediate improvements. That said, as homeowners choose to remain in their aging homes rather than move, they continue to turn to industry professionals for assistance with necessary repairs and discretionary projects that improve their quality of life.”
More than two-thirds of respondents will kick off remodeling projects this year (69 percent). To tackle these substantial projects, 86 percent plan to hire a professional. Nearly half of projects planned for 2023 have a budget of over $30,000 (48 percent), and one in five projects has a budget of $100,000 or more (21 percent).