1. home and garden
2. remodeling and construction

2015
HOUZZ & HOME
June 2015
Overview of U.S. Renovation, Custom
Building & Decorating in 2014
Houzz.com
@Houzz
© 2015 Houzz Inc.
Big Ideas
•  More than half of homeowners on Houzz renovated their homes in 2014
•  Millennial homeowners were just as likely to renovate their homes as
other age groups in 2014, largely driven by the desire to make a newly
purchased home their own
•  Over half of 60+ households are planning to age in place, and many are
modifying interiors with this in mind
•  Homeowners are divided on the importance of health-related
considerations, as well as integrating green materials and smart
technology, when it comes to 2014 renovations
Houzz.com
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© 2015 Houzz Inc.
Contents
Houzz.com
Overview of 2014 activities
4-5
Diversity of renovations and triggers
7-9
Renovation motivations and challenges
10-14
Role of renovation professionals
15-17
Popular renovation projects and spend
18-25
Aging-in-place upgrades
26-29
Custom home characteristics and spend
30-34
Decorating projects and spend
35-36
2015 at a glance
37-39
Appendix
40-43
3
© 2015 Houzz Inc.
Houzzers Are Active Renovators
Consistent with prior years' findings, home renovation and decorating activities trump purchasing or selling a
home. Over half of homeowners on Houzz renovated and nearly two in three decorated their homes in 2014.
Nearly one in 20 homeowners on Houzz started or continued building a custom home in 2014.
FREQUENCY OF HOME-RELATED ACTIVITIES IN 2014 AMONG HOMEOWNERS
Decorating
63%
Renovating
58%
Repairing
Purchasing
14%
Moving
14%
Selling
Custom building
Houzz.com
47%
6%
4%
4
© 2015 Houzz Inc.
Millennial Homeowners, an Active Few
In line with national averages, only one in 10 homeowners surveyed is 25-34 years old. Similar to other
generations, over half of Millennial homeowners (25-34) renovated their homes in 2014. Yet, relatively more of
them decorated their homes and made minor repairs in 2014, compared to Baby Boomer homeowners (55+).
HOMEOWNER AGE COMPOSITION
FREQUENCY OF ACTIVITIES BY AGE AMONG HOMEOWNERS
Decorated Renovated 65+
14%
Made repairs 25-34
79%
10%
69%
35-44
18%
62%
58%
62%
58%
51%
31%
58%58%
57%
47%
54%
57%
45%
42%
26%
55-64
45-54
25-34
35-44
55-64
65+
Age of Homeowner
Age of Homeowner
Houzz.com
45-54
5
© 2015 Houzz Inc.
2014 IN FOCUS: RENOVATIONS
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© 2015 Houzz Inc.
A Diversity of Renovation Projects
Homeowners on Houzz are actively renovating all parts of their homes. Four out of five homeowners who
renovated in 2014 made upgrades to the main home structure (80%) and three in five made upgrades to their
outdoor spaces or structures (62%). The popularity of home and outdoor projects is relatively consistent across
generations and income levels.
FREQUENCY OF RENOVATIONS AMONG HOMEOWNERS WHO RENOVATED*
80%
69%
62%
54%
50%
11%
Any part of
home
Interior
Systems
Exterior
Additions
Any
outdoor
*Home renovations include “interior,” “systems,” and “exterior,” which refer to remodels/upgrades of interior spaces (e.g., kitchens), home systems (e.g., HVAC), and home exteriors
(e.g., roofing) within the existing home footprint, respectively. They also include “additions,” which refers to additions/expansions of the home footprint (e.g., kitchen addition).
Outdoor renovations include upgrades of grounds and systems (e.g., landscape, irrigation) and additions/upgrades of outdoor structures (e.g., shed, pool).
Houzz.com
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© 2015 Houzz Inc.
Northeastern and Midwestern Renovators
More Active with Interior Remodels
INTERIOR REMODELING BY STATE AMONG HOMEOWNERS WHO RENOVATED
65% AK
69% CT
78% DC
65% DE
65% HI
70% MD
71% RI
69%
National
average
59% Houzz.com
8
78% © 2015 Houzz Inc.
Western and Southern Renovators
More Active with Outdoor Projects
OUTDOOR RENOVATIONS BY STATE AMONG HOMEOWNERS WHO RENOVATED
64% AK
62% CT
46% DC
65% DE
61% HI
57% MD
60% RI
62%
National
average
46% Houzz.com
9
72% © 2015 Houzz Inc.
Money, Time, Home Purchases Drive Timing
The top reasons for choosing to renovate in 2014 relate to money, time, and a recently purchased home. Older
Gen X’s (45-54) and younger Baby Boomers (55-64) finally have the money and time required to renovate, while
recent home purchases drive Millennials (25-34) and younger Gen X’s (35-44). Other triggers, such as recent
deterioration or life events, are each drivers for less than 20% of homeowners.*
FREQUENCY OF TOP RENOVATION TRIGGERS BY AGE AMONG HOMEOWNERS WHO RENOVATED
55%
39%
41%
35%
34%
28%
All
30%
33%
41%
37%
40%
35%
37%
24%
25-34
35-44
Wanted to do it all along and finally had the financial means
55-64
Purchased home recently and wanted to customize it
21%
65+
Purchased Home in 2014
33%
19%
9-11%
Wanted to do it all along and finally had the time
36%
19%
45-54
Age of Homeowner
33%
Millennials (25-34)
Younger Gen X’s (35-44)
Other (45+)
*See page 43 for a supplementary table on renovation triggers.
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© 2015 Houzz Inc.
Divided on Healthy, Green and Smart Homes
Design and functionality continue to drive renovation choices. While resale value, energy efficiency and costs
are of secondary importance to most homeowners, very few consider them unimportant. In contrast,
homeowners are divided on healthy, green, and smart home integrations, with 25%-42% rating them as very to
extremely important and 19%-30% considering them not at all important.
IMPORTANCE OF RENOVATION CONSIDERATIONS AMONG HOMEOWNERS WHO RENOVATED
Very/Extremely
Important
Average
Importance Rating
9.2
Improving design/look & feel
8.9
Improving functionality
91%
1%
85%
2%
Increasing resale value
8.0
69%
6%
Improving energy efficiency
7.9
67%
6%
Minimizing costs
7.8
62%
4%
6.3
42%
23%
6.0
32%
19%
25%
30%
Preventing or addressing health concerns
Integrating green/sustainable materials
Integrating smart technology
Houzz.com
Not at All
Important
5.3
11
© 2015 Houzz Inc.
Priorities Universal Across Ages
Home renovation priorities span generations. Design, functionality and energy efficiency are prized nearly
identically across age groups. Meanwhile, Millennials (25-34) are somewhat more sensitive to resale value, costs,
and health considerations than older Baby Boomers or other seniors (65+).
AVERAGE IMPORTANCE RATING OF RENOVATION CONSIDERATIONS BY AGE
9.1
9.1
9.2
9.2
9.1
Improving design/
look & feel
Improving energy
efficiency
Houzz.com
Increasing resale
value
8.9
8.9
8.9
8.9
8.8
Improving
functionality
8.4
8.1
8.0
8.0
7.7
8.2
7.9
7.9
7.7
7.4
Minimizing costs
7.8
7.9
7.9
8.0
7.8
Preventing or
addressing health
concerns
12
6.7
6.4
6.1
6.1
6.1
25 - 34 35 - 44 45 - 54 55 - 64 65+ © 2015 Houzz Inc.
Considerations Increase as Income Declines
While renovation considerations do not vary by generation, they are in fact tightly linked with household income.
The more income is constrained, the higher homeowners rank the importance of lowering costs, improving
energy efficiency, addressing health concerns, and integrating sustainable materials. Resale value is of greatest
importance to those making $100K-$200K, and smart home integrations to those $200K+ households.
Average Importance Rating
RELATING INCOME AND AVERAGE IMPORTANCE RANKING OF RENOVATION CONSIDERATIONS
9.4
9.0
8.8
8.5
8.2
9.0
Improving functionality
Increasing resale value
7.8
7.5
7.7
6.9
6.5
6.3
6.0
5.5
4.6
<$50K
Improving design/look & feel
Improving energy efficiency
Minimizing costs
Preventing or addressing health
concerns
Integrating green/sustainable
materials
Integrating smart technology
$50K$74.9K
$75K$99.9K
$100K$124.9K
$125K$149.9K
$150K$199.9K
$200K$499.9K
$500K+
Household Income
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© 2015 Houzz Inc.
Top Challenges Vary by Age
As age increases, finding service providers and products grows in difficulty, while staying on budget and funding
are the top challenges facing the young. Finding the right service provider, locating the right products and
materials, and staying on budget are the top three challenges during renovations for a third of homeowners (33%,
33%, and 32%, respectively).
FREQUENCY OF TOP RENOVATION CHALLENGES AMONG HOMEOWNERS WHO RENOVATED
Finding the right service providers
33%
Finding the right products and materials
33%
Staying on budget
32%
Funding/financing the project
25%
Defining my/our style
35%/38%
36%/41%
Finding providers
Finding products
22%
Staying on schedule
19%
Educating myself
17%
Collaborating with my spouse/partner
16%
Dealing with the unexpected
15%
Working with the service providers
10%
Understanding/complying with the building
3%
Other
3%
I did not have any challenges
9%
Houzz.com
Top Challenges
For Younger/Older Boomers
Top Challenges
for Millennials/Younger Gen X’s
38%/37%
37%/33%
14
Staying on budget
Funding/financing
© 2015 Houzz Inc.
General Contractors in High Demand
Four in five homeowners renovated their homes with professional help in 2014 (84%). Roughly half of them
involved a general contractor (44%) and/or a kitchen and bath remodeler (8%). Another half hired a specialty
service provider directly without the help of a general contractor (48%). Older generations are more likely than
younger generations to hire general contractors and design professionals.
FREQUENCY OF HIRED PROFESSIONALS AMONG HOMEOWNERS WHO RENOVATED WITH PRO HELP
General contractor
Interior designer
Architect
44%
12%
10%
Kitchen and bath remodeler
8%
Kitchen and bath designer
7%
Design-build
6%
Landscape contractor
Landscape architect or designer
Top Specialties
Hired Directly by Homeowners*
18%
17%
15%
15%
10%
10%
19%
10%
Specialty (direct hire*)
48%
Electrician
Plumber
Carpet/Flooring
Painter
Tiles/Stone
HVAC
84%
Hired a
pro
*The frequency of specialty professionals hired directly by homeowners refers to all specialties hired without the involvement of a general contractor, kitchen and bath remodeler or
design-build firm.
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© 2015 Houzz Inc.
Reviews Drive Hiring Decisions
Consistent with last year's findings, good reviews or recommendations continue to be the most important factor
when choosing a service provider (83%), followed by experience with projects of similar scope (59%) and good
communication/organization skills (49%). While Millennial homeowners generally align with other generations on
hiring criteria, they are twice as likely as younger Baby Boomers (55-64) to base hiring on the lowest cost bid.
FREQUENCY OF TOP HIRING CRITERIA AMONG HOMEOWNERS WHO RENOVATED WITH PRO HELP
Cost-Based Hiring Criteria by Age
83%
59%
49%
t 38%
49%
39%
31%
24%
21%
34%
Millennials (25-34)
Younger Gen X’s (35-44)
Older Gen X’s (45-54)
Younger Boomers (55-64)
Older Boomers+ (65+)
31%
7%
Reviews/
recommendations
Houzz.com
Experience
Communication/
with similar scope organization skills
Experience
with similar style
16
Personality
Lowest cost
Other
© 2015 Houzz Inc.
Older Homeowners Rely on Pro Advice
A third of homeowners who hired professional help during renovations cite their service providers as having
significant or moderate influence on their decision making. Family and friends are another large source of influence
for half of homeowners. With age, homeowners tend to rely less on family or friends and more on service providers
or themselves when making renovation decisions.
FREQUENCY OF RENOVATION INFLUENCERS AMONG HOMEOWNERS WHO RENOVATED WITH PRO HELP
Moderate influence Family or friends
38%
11%
Significant influence 49%
Service Provider Influence by Age
26%
Service provider
7% 32%
36%
25%
Other
No one
3%
4%
30%
27%
8%
38%
9%
6%
5%
28%
30%
55-64
65+
24%
21%
23%
25-34
35-44
36%
45-54
Age of Homeowner
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© 2015 Houzz Inc.
Renovating Core Living Spaces
Kitchen, bath, and living/family rooms top the list of interior renovations for 2014. One in 20 renovated the entire
interior of the home.
FREQUENCY OF TOP INTERIOR REMODELS/ADDITIONS AMONG HOMEOWNERS WHO RENOVATED
Kitchen
27%
Guest/other bathroom
23%
Living/family room
22%
Master bathroom
25%
24%
19%
22%
Guest/other bedroom
14%
16%
Master bedroom
14%
16%
Closet
13%
16%
Dining room
13%
14%
Laundry room
12%
14%
Home office
Basement conversion
Houzz.com
29%
10%
6%
All interior spaces
5%
Other interior spaces
5%
11%
6%
Remodel Addition 5%
7%
18
© 2015 Houzz Inc.
Scope Drives Kitchen Remodel Costs
Major kitchen remodels, which at a minimum include replacing all kitchen cabinetry and appliances within the
existing home footprint, run on average $29,400 for a smaller kitchen (200 square feet or less) and $42,400 for
a larger kitchen (more than 200 square feet). In larger-scope projects when a construction professional is
involved, the costs are even higher.
AVERAGE SPEND BY KITCHEN REMODEL SCOPE AMONG HOMEOWNERS WHO REMODELED
Hired General Contractor
or Kitchen and Bath Remodeler
All Kitchen Remodels
$48,000
$42,400
$36,500
$29,400
$24,800
$17,800
$15,100
$11,700
Small Kitchen
(<201 sq. ft.)
Large Kitchen
(201+ sq. ft.)
Minor remodel* Small Kitchen
(<201 sq. ft.)
Large Kitchen
(201+ sq. ft.)
Major remodel* *Major kitchen remodel refers to a remodel where at least all the cabinets and appliances are replaced; minor kitchen remodel includes all other remodels. Remodels do not include
any additions that increase the overall home footprint.
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© 2015 Houzz Inc.
Scope Drives Bathroom Remodel Costs
Major bathroom remodels, which at a minimum include replacing bathroom cabinetry/vanity, toilet and
countertops within the existing home footprint, run on average $10,500 for a smaller master bathroom (100
square feet or less) and $18,800 for a larger master bathroom (more than 100 square feet). In larger-scope
projects when a construction professional is involved, the costs are even higher.
AVERAGE SPEND BY BATHROOM REMODEL SCOPE AMONG HOMEOWNERS WHO REMODELED
Hired General Contractor
or Kitchen and Bath Remodeler
All Bathroom Remodels
Master Bathroom
$10,500
$4,800
Small Bath
(<101Bathroom
sq. ft.)
Guest/Other
$3,200
$7,200
Small Bathroom
(<101 sq. ft.)
$22,900
$18,800
$13,500
$8,300
$6,800
Large Bath
(101+ sq. ft.)
$4,400
Small Bath
(<101 sq. ft.)
$9,500
Large Bathroom
(101+ sq. ft.)
$5,600
Minor remodel* Major remodel* $9,900
Small Bathroom
(<101 sq. ft.)
$12,300
Large Bath
(101+ sq. ft.)
$11,800
$6,000
Large Bathroom
(101+ sq. ft.)
*Major bathroom remodel refers to a remodel where at least cabinetry/vanity, countertops, and toilet are replaced; minor bathroom remodel includes all other remodels. Remodels do
not include any additions that increase the overall home footprint.
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20
© 2015 Houzz Inc.
Boomers Lead in Spending
While the popularity of interior remodels is similar across generations, Baby Boomers (55+) lead in amount of
investment. For example, Baby Boomers (55+) spent, on average, twice as much or more on a kitchen remodel as
Millennial homeowners.
AVERAGE SPEND ON KITCHEN REMODELS BY AGE AMONG HOMEOWNERS WHO REMODELED
Major Kitchen Remodel*
Minor Kitchen Remodel*
$5,100
$16,100
Small Kitchen
(<201 sq. ft.)
$20,000
Small Kitchen
(<201 sq. ft.)
$23,800
$38,700
$6,900
35-44 $10,500
$15,600
$12,300
$37,400
45-54 55-64 65+ $7,500
$26,300
Large Kitchen
(201+ sq. ft.)
25-34 $37,000
Large Kitchen
(201+ sq. ft.)
$39,700
$45,200
$11,600
$16,600
$23,700
$19,700
$54,500
*Major kitchen remodel refers to a remodel where at least all the cabinets and appliances are replaced; minor kitchen remodel includes all other remodels. Remodels do not include
any additions that increase the overall home footprint.
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© 2015 Houzz Inc.
6+ Months Just Planning
Half of homeowners upgrading their kitchens take six months or longer from the initial gathering of ideas to the
start of construction (51%). Furthermore, one in 10 of those renovating a kitchen experiences a 24-plus-monthslong planning cycle. As homeowners get older, the length of the planning cycle increases for all types of interior
upgrades.
FREQUENCY OF PLANNING TIMEFRAME AMONG HOMEOWNERS WHO REMODELED OR ADDED
Kitchen
23%
17%
16%
9%
Bathroom
<1
1-2
20%
3-5
1-2
20%
15%
3-5
23%
1-2
6-8
15%
11%
<1
9-12
6%
6%
13-16
17-24
10%
24+
23%
12%
Other Interior <1
6-8
14%
3-5
6-8
12%
9-12
5%
13-16
17-24
24+
5%
5%
8%
13-16
17-24
24+
13%
9-12
7%
4%
Planning Kitchen Renovation
in Under 6 Months
67%
55%
46%
43%
43%
Millennials (25-34)
Younger Gen X’s (35-44)
Older Gen X’s (45-54)
Younger Boomers (55-64)
Older Boomers (65+)
Length of Planning in Months
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22
© 2015 Houzz Inc.
Discretionary Renovations Exceed Essentials
The frequency of interior remodels, which are typically discretionary in nature, exceeds that of many required
replacement projects. Homeowners are nearly 2X more likely to remodel their kitchen (27%) than roofing (15%).
Upgrades to home automation systems (related to thermostats, electronics, lights, etc.) and home media are
strikingly popular among home system upgrades.
FREQUENCY OF TOP HOME SYSTEM AND EXTERIOR UPGRADES AMONG HOMEOWNERS WHO RENOVATED
Home System Upgrades
Plumbing
29%
Electrical
26%
Home automation
23%
Heating
19%
Exterior Upgrades
Exterior paint
20%
Exterior doors
18%
Porch or deck
18%
Windows/skylights
16%
Cooling
16%
Gutters/downspouts
16%
Home entertainment
15%
Roofing
15%
Water heater
15%
Insulation
Ventilation
12%
Security
Basement waterproofing
Other home systems
Houzz.com
9%
Siding/stucco
7%
Structural (walls)
6%
Chimney
6%
Other home exterior
8%
23
13%
5%
4%
© 2015 Houzz Inc.
Backyard Luxuries
Landscaping of garden beds or borders is the most common outdoor project, tackled by two in five
homeowners. One in five upgrades their natural lawn, and one in 10 upgrades their irrigation system. The most
common upgrades to outdoor structures include patios/terraces, fences, and sheds.
FREQUENCY OF TOP OUTDOOR UPGRADES AMONG HOMEOWNERS WHO RENOVATED
Grounds Upgrades
41%
Beds or borders
Lawn (real)
14%
12%
Driveways
9%
Retaining walls
6%
Water feature
Art feature
Houzz.com
Fence
14%
Shed
5%
Pergola, arbor, gazebo, or trellis
5%
15%
Lighting
23%
Patio, terrace or detached deck
20%
Pathways or steps
Irrigation system
Outdoor Structures Upgrades
Detached carport or garage 4%
Swimming pool 2%
Hot tub or other spa
1%
Guest house
1%
6%
Play structure
1%
6%
Greenhouse
24
0.5%
© 2015 Houzz Inc.
Primarily Cash and Credit
Most homeowners leverage personal savings to fund renovations. Only a quarter charge expenses to a credit card
and only one in ten take out some type of a loan. Millennial homeowners turn to credit more frequently than other
generations.
FREQUENCY OF PAYMENT METHODS AMONG HOMEOWNERS WHO RENOVATED
87%
Paid from savings/personal finances
25%
Charged to a credit card
Took out a loan (home equity,
construction, etc.)
9%
Borrowed from retirement savings
account or pension plan
3%
Refinanced home mortgage and got
cash back
2%
Borrowed money from friends/family
2%
Other
3%
Houzz.com
Credit Card Usage by Age
32%
25-34
25
28%
25%
23%
35-44
45-54
55-64
Age of Homeowner
21%
65+
© 2015 Houzz Inc.
Staying Indefinitely
Over half of homeowners with household members who are 60 years old or older plan to stay in their residence
indefinitely, consistent with last year's findings. Only a quarter intend to move to another residence, while the rest
are still unsure. Those in the West and South are more likely to stay in their residence indefinitely (59% and 57%)
relative to those in the Northeast and Midwest (52% and 54%).
FREQUENCY OF INTENTION TO MOVE OR STAY AMONG HOMEOWNERS WITH HOUSEHOLD MEMBERS AGES 60+
Not sure
Renovations Among Households
Age 60+ Who Intend to Stay
18%
Other
Move
in 6+ years
6%
56%
Move
in < 6 years
Houzz.com
Stay
indefinitely
Renovated in
2014
Plan to renovate
in 2015
19%
26
60%
52%
© 2015 Houzz Inc.
Aging in Place: Kitchen Redesign
One in five staying-in-place seniors remodeled a kitchen in 2014, and 60% of them made upgrades with aging in
mind. A significant share made structural changes, such as reconfiguring the layout (28%), widening hallways and/
or doorways (16%), and changing the kitchen location altogether to improve accessibility (6%). The Northeast
leads other regions with respect to these structural modifications, likely due to older housing stock.
FREQUENCY OF ACCESSIBILITY UPGRADES AMONG AGING IN PLACE HOUSEHOLDS AGE 60+ WHO UPGRADED KITCHEN
Layout change
28%
Easy-to-operate faucets
28%
24%
Easy-to-open appliances
Safe appliances
17%
16%
Wider hallways and/or doorways
Easy-to-reach storage
13%
Seated work areas
13%
11%
Non-glare and/or slip-resistant flooring
Kitchen location change
6%
Lower counter height
2%
Emergency call button or intercom
Other accessibility upgrades
1%
3%
No accessibility upgrades
Houzz.com
Remodeled/added
kitchen
Among staying-in-place
homeowners with
household members
age 60+
8%
Trip hazards removal
20%
40%
27
© 2015 Houzz Inc.
Aging in Place: Bathroom Redesign
One in four staying-in-place seniors remodeled a bathroom, and 69% of them made upgrades with aging in mind.
A significant share made structural changes, such as reconfiguring the layout (19%), widening hallways and/or
doorways (11%), or changing the bathroom location altogether (7%).
FREQUENCY OF ACCESSIBILITY UPGRADES AMONG AGING IN PLACE HOMEOWNERS AGE 60+ WHO UPGRADED BATHROOM
38%
Raised toilet
26%
Grab bars
26%
Easy-to-access shower stall
24%
Seating in shower, tub, or other
Bathtub removal
Layout change
19%
13%
Trip hazards removal
Bathroom location change
7%
Easy-to-access bathtub
3%
0.3%
3%
31%
No accessibility upgrades
Houzz.com
Among staying-in-place
homeowners with
household members
age 60+
11%
Wider hallways and/or doorways
Other accessibility upgrades
Remodeled/added
bathroom
20%
Non-glare/slip-resistant flooring
Emergency call button or intercom
23%
22%
28
© 2015 Houzz Inc.
Aging in Place: Other Interior Redesign
While one in three staying-in-place seniors remodeled other interior spaces (non-kitchen/non-bath), only 28% of
them made upgrades with aging in mind. Most common modifications included reconfiguring the layout (16%) and
installing easy-to-reach storage (12%). One in 10 changed the location of their living spaces to improve
accessibility. A few installed smart technology to remotely monitor activity in the home (5%).
FREQUENCY OF ACCESSIBILITY UPGRADES AMONG AGING IN PLACE HOUSEHOLDS AGE 60+ WHO UPGRADED OTHER INTERIOR SPACES
16%
Layout change
12%
Easy-to-reach storage
Room location changes
Trip hazards removal
9%
Wider hallways and/or doorways
6%
Non-glare/slip-resistant flooring
6%
Smart technology for remote monitoring
5%
Emergency call button or intercom
1%
Elevator or lift
1%
Wider stairways or shaft for future lift
1%
Other accessibility upgrades
32%
8%
Remodeled/added
non-K&B interiors
Among staying-in-place
homeowners with
household members
age 60+
5%
No acessibility upgrades
Houzz.com
62%
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2014 IN FOCUS: CUSTOM HOME BUILDS
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Building Large Custom Homes
One in 20 built a custom home, and a sizable one, in 2014. Three in four custom homes are multi-level, and four in
five are over 2,000 square feet. A large majority of custom homes have three or more bedrooms and bathrooms
(89% and 77% respectively), while one in six has five or more bedrooms and bathrooms.
FREQUENCY OF CUSTOM HOME DIMENSIONS AMONG HOMEOWNERS WHO BUILT A CUSTOM HOME
Finished Size (Sq. Ft.)
1,000 or less
1,001 - 2,000
Number of Finished Levels
2%
Twolevel
16%
36%
2,001 - 3,000
3,001 - 4,000
More than 4,000
22%
48%
25%
Number of
Bedrooms & Bathrooms
20%
Bathrooms Onelevel
1
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23%
21%
2% 2%
14%
9%
2
Four-level
or more
3%
27%
37% 38% 35%
Bedrooms Threelevel
3
4
31
9%
5
4% 6%
6
© 2015 Houzz Inc.
Design Pros Dominate Custom Building
Nearly all homeowners who built a custom home hired professional help (95%). Of these homeowners, many hired
an architect (46%), an interior designer (25%), kitchen and bath designer (20%), and/or a design-build firm (27%).
Top hiring criteria for custom-build professionals is similar to those for renovations, yet more homeowners are
influenced by their service providers during custom home builds (48% vs. 32%, respectively).
FREQUENCY OF HIRED PROFESSIONALS AMONG HOMEOWNERS WHO BUILT A CUSTOM HOME WITH PRO HELP
General contractor
65%
Architect
46%
Design-build
25%
Kitchen and bath designer
Kitchen and bath remodeler
20%
5%
Top Hiring Criteria
Landscape contractor
Landscape architect or designer
Specialty (direct hire*)
Homeowners who
are influenced by
service providers
when making
custom build
decisions
27%
Interior Designer
48%
33%
28%
24%
62%
51%
47%
36%
27%
Reviews or recommendations
Experience with similar scope
Communication or organization
Experience with similar style
Personality
*The frequency of specialty professionals hired directly by homeowners refers to all specialties hired without the involvement of a general contractor, kitchen and bath remodeler or
design-build firm.
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Financing Custom Homes
Given the high average spend on a custom home ($639,800), the majority of homeowners are financing at least a
portion of their new home with a secured loan (60%). An even larger number are paying in part for their new
home with cash (60%).
CUSTOM BUILD SPEND AND PAYMENT METHODS AMONG HOMEOWNERS WHO BUILT A CUSTOM HOME
Payment Methods
Custom Home Average
Spend To-Date*
$639,800
Finished in 2014
$555,300
Still in progress in 2014
Took out a loan (home equity,
construction, etc.)
Charged to a credit card
60%
13%
Borrowed from retirement savings
account or pension plan
7%
Borrowed money from friends/family
5%
Refinanced home mortgage and got
cash back
Other
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77%
Paid from savings/personal finances
33
3%
7%
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Challenging to Stay on Budget and Schedule
While renovating homeowners’ top challenges are finding the right professionals and products, those building
custom homes have the greatest difficulty staying on budget and on schedule given the larger project scope.
Finding the right products and materials is a close third to staying on schedule.
FREQUENCY OF TOP PROJECT CHALLENGES AMONG HOMEOWNERS WHO BUILT A CUSTOM HOME
Staying on budget
52%
Staying on schedule
34%
Finding the right products and materials
28%
Dealing with the unexpected
23%
Finding the right service providers
20%
Defining my/our style
20%
Working with the service providers
17%
Educating myself
15%
Funding/financing the project
13%
Collaborating with my spouse/partner
13%
Understanding/complying with the building code
7%
Other
I did not have any challenges
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4%
5%
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2014 IN FOCUS: DECORATING
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Diversity of Decorating Projects
Among the two-thirds of homeowners who decorated in 2014, nearly half decorated or furnished their living room
or family room, and a quarter decorated all interior spaces. Millennials are nearly twice as likely to decorate all
interior spaces than younger Baby Boomers (55-64).
FREQUENCY OF TOP DECORATING PROJECTS AMONG HOMEOWNERS WHO DECORATED
Living/family room
48%
Master bedroom
23%
Guest/other bedroom
23%
Kitchen
22%
All interior spaces
22%
Dining room
17%
Master bathroom
16%
Other
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34%
23%
18%
18%
19%
21%
Guest/other bathroom
Decorating
All Interior Spaces by Age
Millennials (25-34)
Younger Gen X’s (35-44)
Older Gen X’s (45-54)
Younger Boomers (55-64)
Older Boomers (65+)
9%
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2015 AT A GLANCE
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Concrete Plans to Renovate
Over half of homeowners on Houzz plan to continue or start renovations in 2015 (55%). Nearly half of
homeowners plan to decorate (46%). Four in five plan to hire professional help for their projects.
PLANNED 2015 ACTIVITIES AMONG HOMEOWNERS
55%
Renovating
Custom building
Houzz.com
Homeowners
planning to hire
a pro for 2015
projects
46%
Decorating
81%
3%
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Many Planning Big-Ticket Purchases
Three in four homeowners surveyed are planning to purchase one or more renovation or decor products in the
next six months (75%). A substantial proportion of homeowners are planning big-ticket renovation purchases such
as flooring, countertops, tile, windows/doors and many others.
PLANNED PURCHASES IN THE NEXT SIX MONTHS AMONG HOMEOWNERS
39%
Interior or exterior paint
Decorative accessories
(pillows, bedding, etc.)
32%
31%
Lighting
Interior furniture
Bathroom plumbing fixtures
(sinks, faucets, etc.)
Window treatments
(curtains, blinds, etc.)
Countertops
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Outdoor furniture
18%
Kitchen appliances
18%
30%
Kitchen plumbing fixtures
(sinks, faucets, etc.)
17%
30%
Kitchen cabinets
17%
Outdoor products
(BBQ, firepit, etc.)
29%
27%
Flooring (non-carpet)
20%
Windows/doors
23%
15%
Carpeting
13%
Deck/decking
13%
Tile
22%
Exterior siding or roofing
11%
Rugs
21%
Mattress
11%
Storage/organization systems
(closet, garage, etc.)
21%
Laundry appliances
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8%
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APPENDIX
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Methodology
The annual Houzz and Home study is the largest survey of residential remodeling, building and
decorating activity conducted. The survey covers every aspect of home renovation in 2014, from
interior remodels and additions to home systems, exterior upgrades, and outdoor projects. This
includes historical and planned spends, professional involvement, and motivations and
challenges behind these projects, as well as planned activities for 2015. The 2015 Houzz and
Home survey gathered information from more than 260,000 respondents worldwide, 170,000 of
which are from the U.S. alone, representing the activity of the more than 30 million monthly
unique users that use Houzz.
The Houzz & Home survey was sent via email to registered users of Houzz and fielded in
February-April 2015. The Farnsworth Group, an independent market research firm, conducted the
survey. The current report relies on responses of U.S. homeowners on Houzz; n=152,939.
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Homeowner
Demographics
EDUCATION
MARITAL STATUS
Married/
Civil Union
Other
77%
1%
30%
Associate
Degree
Or Less
31%
7%
Domestic
Partnership
Single
8%
6%
2%
Widowed
37%
Graduate/
Professional
School Degree
Divorced/
Separated
ANNUAL HOUSEHOLD INCOME
39%
28%
33%
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Bachelor’s
Degree
OWNER-ESTIMATED HOME VALUE
Less than $100,000
$100,000-$149,999
$150,000 or more
23%
49%
29%
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Less than $200,000
$200,000-$499,999
$500,000 or more
© 2015 Houzz Inc.
Supplementary Table
FREQUENCY OF RENOVATION TRIGGERS BY AGE AMONG HOMEOWNERS WHO RENOVATED
RENOVATION TRIGGERS
All
25-34
35-44
45-54
55-64
65+
Wanted to do it all along and finally have the financial means
39%
34%
41%
42%
40%
34%
Wanted to do it all along and finally have the time
35%
31%
33%
36%
37%
36%
Purchased home recently and want to customize it
28%
55%
37%
24%
19%
22%
Addressing recently discovered deterioration/damage due to age, termites, etc.
19%
17%
18%
19%
19%
20%
Adapting to recent changes in family and/or lifestyle
16%
15%
16%
16%
16%
17%
Plan to sell the home soon and want to increase resale value
11%
11%
9%
11%
12%
11%
Addressing recent damage due to a natural disaster in my area
4%
3%
3%
4%
4%
4%
Other home projects triggered a code upgrade
3%
2%
2%
3%
3%
3%
Other
7%
3%
4%
7%
8%
10%
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