Home renovation spending surges amid supply crunch
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People are spending a lot more money renovating their homes compared to past years.
Driving the news: A 2024 report from Houzz shows median spending on home renovations is up 60% since 2015. High-end renovations nearly doubled to $150,000 during that same time period.
The big picture: Limited inventory and high mortgage rates have made moving less attainable. Renovating is a more appealing option for homeowners ready to upgrade, Houzz economist Marine Sargsyan tells Axios.
- Aging homes and rising labor and product costs also contribute to that striking spending growth.
Zoom in: Kitchens and bathrooms are the most commonly renovated rooms — and typically the most expensive, Sargsyan says.
- A high-end, large kitchen renovation can cost upward of $200,000, recent Houzz data show.
The intrigue: Multigenerational design that allows homeowners to age in place is also in high demand. In bathrooms, features like grab bars, nonslip flooring, curbless showers and wider doorways help make the space functional well into the future, Sargsyan says.
What's next: The majority of homeowners who renovate plan to stay in their homes for at least another decade, Houzz found.
Go deeper: Colorful home design is making a comeback in 2025
