HomeAdvisor’s new state of Home spending report provides a wealth of information about homeowners’ habits and behaviors when it comes to home improvement costs, home maintenance costs, and home emergency costs.
Mischa Fisher, chief economist at ANGI Homeservices (owner of HomeAdvisor), gives an overview of the report.
Homeowners spend more on home improvement than on home maintenance
When they take out their wallets, homeowners are more likely to spend money on improving their space rather than tackling a maintenance project. “For every dollar spent on home maintenance, homeowners spend an average of five dollars on home improvement projects,” Fisher says.
In 2018, homeowners spent an average on home improvement projects. “They spent an average on maintenance projects and on emergency projects,” Fisher said.
States spend the most and the least on home improvement
Residents of Massachusetts, Hawaii, Rhode Island and Maryland are among the states that spend the most on home improvement projects. “On the other hand, West Virginia, Wyoming, New Mexico, South Dakota and Maine are among the states that spend the least on home improvement,” Fisher says.
Spending on home improvement increased by 17.5% compared to 2018. Fisher attributes this in part to a rise in consumer wages and a cultural emphasis on design aesthetics. “Moreover, the cost of skilled craftsmen is rising and there are better (but more expensive) Home improvement tools”” he says.
What do the owners improve?
Bedrooms are the most popular Home improvement choice. “Among these renovation projects, bathrooms remain the most popular choice among all generations, probably in part due to their relatively affordable cost compared to kitchens” according to Fisher. Many homeowners are incorporating the 2019 bathroom technology trends. “A bathroom renovation usually, and most homeowners spend.”While a small or medium bathroom costs, he says a master or large bathroom can cost more than to renovate.
In addition to remodeling rooms, other popular projects include installing new appliances, replacing the roof and finishing hardwood floors.
Motivation to implement the projects
Among generations, millennials are more likely to complete a home project to increase the resale value of the home. “While Baby Boomers and Gen Xers are more likely to ‘modernize’ their homes, millennials and The Silent Generation say they want to improve aesthetics and design,” Fisher says.
When homeowners focus on repairing parts of the home, they replace or repair damaged, rotting, or defective areas. Fisher says they are more likely to focus on the following projects: a new roof, a new HVAC, a new fence, building a deck, new gutters, replacing windows, and new siding.
Home emergency projects
One in five homeowners said they needed to complete an emergency project. Examples of emergency projects in the home include repairing hail damage to the roof or replacing a faulty water heater. “Homeowners who live in areas prone to extreme weather spend the most money on emergency projects,” Fisher says. Texas, Alabama, Georgia and Louisiana are leading in this region, due to tropical storms, thunderstorms, overflow and hail.
However, you might be surprised to discover that an older home doesn’t necessarily mean you’ll spend more in an emergency. “The owners of a 100-year-old home spend an average less on emergency repairs than the owner of a new home,” Fisher says.
How homeowners look for costs
When researching renovation costs, there are strong generational differences. Example:
- Millennials: 77% use the Internet, 64% consult big box stores, 30% have already used an entrepreneur
- GEnx: 74% consult big box stores, 70% use the Internet, 23% ask an entrepreneur who has already used
- Baby boomers: 60% visit a large store, 58% use the Internet, 35% ask an entrepreneur who has already used
- The Silent Generation: 50% consult big box stores, 32% ask an already used entrepreneur and 25% use the Internet
