First-Time Buyers Aren’t Afraid of Renovation

~ I remember when I purchased my first home. It was a HUD home and needed everything updated and we did everything slow as we didn’t have the money, but we liked being able to work on something we knew was ours ~

First-Time Buyers Aren’t Afraid of Renovation

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.

Source: “Houzz & Home Survey,” Houzz (May 4, 2017)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s