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2019HOUZZ & HOME - AUSTRALIAAugust 2019

Overview of Home Renovation in 2018 and 2019

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Big Ideas

GROWTH IN KITCHEN RENOVATION SPENDSpend on kitchen renovations grew by 16 percent in the past year to a median spend of $20,000. Kitchens are the most popular room to renovate, followed by living rooms (26% and 23%, respectively). Bedrooms, bathrooms and laundries were all equally popular this year at 17%.

RENOVATION ACTIVITY DRIVEN BY OLDER GENERATIONSBaby Boomers (ages 55-74) and Gen Xers (ages 40-54) combined represent over three quarters of the renovation activity (79%), at a median spend of $21,000 and $23,000, respectively. 41% of Gen Xers and 35% of Baby Boomers anticipate new projects in 2019.

MOTIVATIONS FOR RENOVATINGAs homeowners consider whether to renovate their current home or to purchase a new home, the top two considerations for renovating are to stay in their current home or area, outranking return on investment. Wanting to stay in the current home is the biggest decision driver for Baby Boomers and Gen Xers, whereas Millennials (ages 25 to 39) chose to stay in their current home and renovate because it was more affordable than moving.

RENOVATION ACTIVITY REMAINS STEADYRenovation activity remained strong through 2018. Half of homeowners on Houzz renovated an average of three rooms per project, at an overall median spend of $20,000. Nearly half of renovating homeowners planned to continue or begin renovations in 2019 (47%).

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53%

50%

41%

12%

10%

6%

54%

52%

46%

12%

12%

7%

57%

53%

44%

14%

12%

7%

Decorated or furnished

Renovated

Repaired

Moved in

Purchased

Sold

What We Are Doing in Our HomesCharts below show the frequency of activities related to the primary home in 2016, 2017 and 2018, as well as the median renovation spend per renovating homeowner in 2016, 2017 and 2018, overall and by age, as reported by homeowners on Houzz Australia.

ACTIVITIES IN THE HOME BY YEAR

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ANNUAL RENOVATION SPEND (AU$)

2016 2017 2018

MEDIAN 23,000 25,000 20,000

90TH PERCENTILE 140,000 150,000 180,000

MEDIAN ANNUAL RENOVATION SPEND (AU$) BY GENERATION

2017 20182016

15,000

23,000 21,000

25-39 40-54 55-74

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How We Are Funding Our Home RenovationsCharts below show the frequency of top five funding sources for home renovations, overall and by age, as reported by homeowners who renovated their primary homes in 2018. Year-over-year comparison are not possible due to a change in question wording.

TOP FIVE RENOVATION FUNDING SOURCES IN 2018

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OVERALL RENOVATING HOMEOWNERS BY AGE

25-39 40-54 55-74

86%

21%

17%

8%

8%

73%

19%

19%

9%

5%

74%

18%

8%

11%

5%

76%

19%

13%

10%

6%

Cash/savings

Credit card that can be used anywhere

Cash from home mortgage refinance

Cash from previous home sale

Gift/inheritance

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37% 36%

29%

21%17%

35% 34%

26%

20% 17%

37%34%

26%22%

15%

Wanted to do it all alongand finally have the time

Wanted to do it all alongand finally have the

financial means

Purchased home/movedin recently and want to

customise it

Adapting to recentchanges in family and/or

lifestyle

Addressing recentlydiscovered

deterioration/damagedue to age, termites, etc.

43% 23% 22%25-39 40-54 55-74

TOP FIVE REASONS FOR STARTING RENOVATIONS BY YEAR

Why We Are Renovating NowChart below shows the frequency of top five reasons for starting renovations, overall and by age, as reported by homeowners who renovated their primary homes in 2016, 2017 and 2018.

5

33% 38% 37%25-39 40-54 55-74

RENOVATING HOMEOWNERS BY AGE RENOVATING HOMEOWNERS BY AGE

2017 20182016

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What We Prioritise During RenovationsChart below shows the frequency of priorities during renovations, overall and by age, as reported by homeowners who renovatedtheir primary homes in 2018.

TOP RENOVATION PRIORITIES IN 2018

RENOVATING HOMEOWNERS BY AGE

Improving energy efficiency

36% 39% 50%25-39 40-54 55-74

Integrating “green” materials

17% 19% 27%25-39 40-54 55-74

Integrating smart technology

9% 10% 15%25-39 40-54 55-74

HIGH PRIORITY

6

72%

68%

49%

43%

43%

24%

22%

12%

Improving design/look & feel

Improving functionality

Increasing resale value

Improving energy efficiency

Minimising costs of improvements

Addressing health concerns

Integrating "green" materials

Integrating smart technology

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35%

34%

32%

21%

19%

Finding the right service providers

Finding the right products and materials

Staying on budget

Defining my/our style

Funding/financing the project

28%

27%

37%

21%

28%

33%

30%

33%

21%

22%

39%

39%

29%

20%

11%

What Renovation Challenges We FaceCharts below show the frequency of top five challenges during home renovations, overall and by age, as reported by homeownerswho renovated their primary homes in 2018.

TOP FIVE RENOVATION CHALLENGES IN 2018

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OVERALL RENOVATING HOMEOWNERS BY AGE

25-39 40-54 55-74

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33% 32% 25%Plumbing Electrical Cooling

Where We Focus Our EffortsCharts and tables below show the frequency of most popular 2016, 2017 and 2018 renovations of interior rooms, as well as 2018upgrades of home systems, exterior building features, and outdoor features, as reported homeowners who renovated their primary homes.

TOP INTERIOR ROOM RENOVATIONS BY YEAR TOP HOME SYSTEM UPGRADES IN 2018

28% 24% 21%Exterior paint Gutters/drain

pipesWindows or

skylights

TOP EXTERIOR FEATURE UPGRADES IN 2018

33% 25% 24%Beds & borders

Planters or planter boxes

Fence

TOP OUTDOOR FEATURE UPGRADES IN 2018

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2017 20182016

26%

23%

17%

17%

17%

26%

24%

18%

18%

17%

25%

23%

17%

17%

16%

Kitchen

Living/family room

Bedroom (other)

Bathroom (master)

Laundry

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How Many Features We UpgradeCharts and tables below show the average number of upgrades during home renovations in 2016, 2017 and 2018, and frequency of these upgrades by age, as reported homeowners who renovated their primary homes.

NUMBER OF UPGRADED FEATURES BY YEAR

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RENOVATING HOMEOWNERS BY AGE

Interior rooms

3.0 3.3 2.725-39 40-54 55-74

Home systems

2.6 2.8 2.525-39 40-54 55-74

Exterior features

2.6 3.1 2.925-39 40-54 55-74

OVERALL UPGRADED FEATURES

2017 20182016

3.0

2.9

2.8

2.7

2.4

2.2

2.9

2.6

2.3

INTERIOR ROOMS

HOME SYSTEMS

EXTERIOR FEATURES

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How Much We Spend on Interior RenovationsCharts below show the 2017 and 2018 median spend on interior room renovations, as well as the percentage change between 2017 and 2018, as reported by homeowners who renovated these interior spaces in their primary homes.

MEDIAN SPEND ON INTERIOR ROOM RENOVATIONS BY YEAR

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2017 2018

2018 MEDIAN SPEND CHANGE (%)

16%

-8%

-11%

$20,000

$12,000

$8,000

$17,250

$13,000

$9,000

Kitchen

Bathroom (master)

Bathroom (other)

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83% 90% 93%

How We Plan Our Home RenovationsCharts and tables below show the frequency of professional hiring in 2016, 2017 and 2018, overall and by age, as reported by homeowners who renovated their primary homes.

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PRO HIRING

OVERALL PRO HIRING

89% 92% 90%2016 2017 2018

PRO HIRING BY AGE

25-39 40-54 55-74

SPECIFIC PRO HIRING IN 2018

19%

11%

10%

9%

8%

7%

5%

5%

4%

Home Builder

Landscape Contractor orGardener

Kitchen Designer or Renovator

Architect

Design & Construction

Building Designer

Bathroom Designer orRenovator

Interior Designer or Decorator

Landscape Architect or Designer

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What We Are Planning for 2019Chart below shows the frequency of planned activities and planned spend in 2019, related to the primary home, as reported by homeowners on Houzz Australia.

PLANNED ACTIVITIES FOR 2019

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NATIONAL PLANNED RENOVATION SPEND PER RENOVATING HOUSEHOLD (IN AU$1,000S)

$15 $200Median 90th Percentile

47%

40%

28%

6%

6%

5%

Renovate

Decorate or furnish

Repair

Build a home

Sell

Move in

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APPROACHHouzz is an all-in-one resource for homeowners working on a home renovation or decorating project. Our large and engaged user community is able to provide unprecedented insights on the latest market trends based on users’ home improvement activity. We aggregate and share these insights with the community to give people greater confidence in the choices they make for their homes, and to give home professionals greater insights into their clients’ wants and needs. With these goals in mind, Houzz conducted an online quantitative survey of registered Houzz users regarding trends in home improvement and design, fielded between April 3, 2019 and April 30th, 2019. The annual Houzz & Home study is the largest survey of residential remodeling, building and decorating activity conducted. This survey covers every aspect of home renovation in 2018, from interior remodels and additions to home systems, exterior upgrades and outdoor projects. This includes the historical and planned spends, professional involvement and motivations behind these projects, as well as activities planned for 2019.

COMPLETES AND QUALIFICATIONSThe 160-question survey gathered information from Houzz users who identified themselves as 18 years old or older and homeowners. The final sample consists of 8,861 respondents in Australia. The current report relies on a subset of responses, i.e., Australian homeowners on Houzz (n=7,824) and Australian homeowners on Houzz who renovated their primary residence in 2018 (n=3,784).

SAMPLING AND WEIGHTINGData were gathered via an email sent to registered Houzz users. The link invited homeowners to tell us about their homes. Respondents were notified that aggregate findings would be shared with the larger Houzz community to help others in completing their own renovations. The final data were reviewed to ensure representation of the Houzz user populations.

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Methodology

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APPENDIX

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31%

22%

22%

8%

8%

6%

2%

1%

Bachelor's degree

Certificate (I-IV) or Diploma

Master's degree or Graduate Diploma

Some further education but no degree

Year 12 or equivalent (HSC/Leaving certificate)

Less than Year 12

Doctorate degree

Other

77%

9%

8%

5%

2%

Married/In a De facto relationship

Single

Living with a significant other/In adomestic partnership

Divorced/Separated

Widowed

A. 2018 Renovating Homeowner Demographics

MARITAL STATUS EDUCATION

ANNUAL HOUSEHOLD INCOME

49% Have child(ren) living with them

33% 29% 38%Under

AU$100,000AU$100,000

to AU$149,999AU$150,000

or higher

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B. Characteristics of Homes Renovated in 2018

YEAR BUILT

HOME TYPE OWNER-REPORTED HOME VALUE

82% 7% 3% 8% 21% 46% 33%Detached -

single familyTownhouse or terrace

Duplex, triplex,

quadruplex

Other Under AU$500,000

AU$500,000 to AU$999,999

AU$1,000,000 or higher

16

5% 6%

13%

28%

20%

11%8% 6%

2016-2019 2011-2015 2001-2010 1981-2000 1961-1980 1941-1960 1921-1940 1901-1920

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C. Links to Resources on Houzz Australia

PHOTOS FIND PROS PRODUCTS STORIES

Kitchen Architects Furniture Most Popular

Bathroom Building Designers Lighting Houzz Tours

Bedroom Home Builders Kitchen & Dining Kitchen

Living Interior Designers & Decorators Bathroom Bathrooms

Dining Design & Construction Bedroom Living Rooms

Outdoor Kitchen Designers & Renovators Storage & Organisation Bedrooms

Baby & kidsBathroom Designers &

RenovatorsOutdoor More Rooms

Home OfficeLandscape Architects & Landscape Designers

Home Improvement Decorating

Storage & Wardrobe Joinery & Cabinet Makers Baby & kids Outdoor Living

Exterior Renovation

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