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The latest report from Houzz Research found that confronted with housing shortages and rising interest rates, a majority of homeowners (61%) still plan to renovate their current homes and stay in them for 11 years or more. The study found that kitchen remodels remain the top projects. Kitchens command the highest median spend at $20,000.
“We are expecting the (renovation) market to continue to grow, just not nearly as fast as it was the past couple of years,” says Abbe Will, a senior research associate at the Harvard Joint Center for Housing Studies (JCHS). “Even if we are in a recession in 2023, it wouldn’t necessarily expect the renovation market to decline.”
In December of 2022, homeowners were projected to spend $448 billion nationally in the first quarter of 2023. That’s roughly a 34.1% increase from the $334 billion homeowners spent in the first quarter of 2020, according to data from the center’s Leading Indicator of Remodeling Activity (LIRA). Recently, JCHS raised their projection for the remodeling market size in 2023 to $485 billion. The National Kitchen & Bath Association (NKBA) estimates that kitchen and bath spending will total $162.4 billion this year.
There is no doubt that consumers are feeling the impact of high interest rates and inflation, which has eroded savings that spiked during the pandemic. NKBA backs up the Houz study, finding that 86 percent of outstanding mortgages are locked in at rates below 5 percent, so those homeowners are opting to remodel their home rather than to move. NKBA projects that kitchen remodels will fuel the industry in 2023.
This presents great promise for the butcher block industry, Forbes recently reported that butcher block countertops remain a popular countertop option for homeowners stating, “For its price, it’s one of the best deals around for kitchen countertops.” In February, Bob Vila.com posted an article about the benefits of butcher block countertops saying in part, “All-purpose butcher block countertops come in an assortment of colors, wood varieties, and designs. Compared with other natural materials and options […] butcher block counters add a warm and inviting atmosphere to any kitchen.They’re affordable, long lasting, versatile, available in multiple wood options, and easy to maintain and refinish–and they’re a sustainable natural countertop material.”
As the economy continues to work itself out of the chaos of the global pandemic, kitchen renovators will clearly be busy enhancing their spaces and making butcher block a key part of their redesign endeavors.
This home remodeling industry update is brought to you by Butcher Block Co.
To review the entire Houzz report, visit: https://www.homeaccentstoday.com/industry-news/houzz-survey-finds-homeowners-renovating-their-homes-for-the-long-run/
Butcher Block Co.
10448 N 21st Pl Phoenix, Arizona