U.S. Homeowners Double Down on Home Improvement Spending in 2023
Angi, a leading and comprehensive solution for improving and
maintaining homes, today released its 2023 State of Home
Spending report which found that homeowners, despite a year of
rising mortgage rates and recession fears, increased their spending
on home services motivated by their love of their homes and a
desire to maintain and improve this fundamentally important space.
The report, which explores home services spending, trends and
motivations, found this year's primary motivations were to maintain
the condition of their homes and make their homes better suited for
current lifestyle needs. Those who took on home projects last year,
spent an average of $13,667 on home improvement, home maintenance
and emergency repairs this year, a 6% increase compared to 2022,
across an average of 11.1 projects.
According to new data from the 2023 State of Home Spending
report, rising mortgage interest rates influenced the way people
thought about and took on home improvement projects this year. This
year 40% of homeowners said they took on more home improvement work
due to rising interest rates making moving or finding a new home a
less feasible option. Looking forward, 30% of homeowners plan to
take on more home projects in 2024 versus moving.
“While many speculated that spending would shift away from the
home this year as the pandemic era restrictions were rolled back,
that is not what we see, homeowners love their homes and continue
to invest in them,” said Angie Hicks, Chief Customer Officer, Angi.
“Pandemic era home services spending continues post pandemic as the
role our homes play in our daily lives changed. This year, the
spending trend continued and we learned more about why people are
investing in home improvement, maintenance and repair work.”
Every year Angi helps millions of people complete their
home projects, providing Angi with unique insights into how
homeowners are improving, maintaining, and repairing their homes.
This annual report focuses on trends in home spending including
drivers, obstacles, top projects and forecasts for the years ahead.
Highlights from this years’ report include:
- Across all three categories of home spending—improvement,
maintenance, and emergencies— total average spending in 2023 was
$13,667 across an average of 11.1
projects. Total spending increased 6% compared to 2022.
- For the first year since 2020, COVID-19 is no longer one of the
most common reasons for projects not being completed, down 55% year
over year. Common issues (permitting delays, materials shortages)
in the home improvement space over the past 3 years are not
impacting home improvement projects like in previous years. This
year homeowners who went over time or budget with projects cited
design choices as the core reason, not material prices or
- Millennials were the top spending age cohort in 2023, spending
an average of $16,136 on home improvement, maintenance and repairs
combined. This stands in contrast to the Baby Boomers and Silent
Generation, who spend less on home improvement in all categories
combined than other generations.
- This year, the top three projects were regular maintenance
(39%), like lawn care and gutter cleaning, followed by interior
painting (30%) and new appliance installation (27%). Bathroom
remodels dropped to fourth place at 26%, breaking a two-year streak
in the top three most popular projects by a slim margin.
- This year, the top motivator was to maintain the condition of
my home (35%), followed by the desire to make their home better
suited to lifestyle and needs (23%). In contrast ROI was only 5% of
American homeowners' top motivation. 2023 marks the fourth year
that return on investment (ROI) as the primary motivator of home
improvement spending has declined.
To read the report and learn more about home improvement trends
in 2023, click here or download the report here.
About AngiAngi (NASDAQ: ANGI) helps homeowners
get home projects done well and helps home service professionals
grow their business. We started in 1995 with a simple goal to help
people find skilled home pros in their area. Now more than 25 years
later, we've evolved to help people with everything from finding,
booking and hiring a skilled pro, to researching costs, finding
inspiration and discovering project possibilities. With an
extensive nationwide network of more than 200,000 skilled home
pros, Angi has helped more than 150 million people maintain,
repair, renovate and improve their homes and has helped hundreds of
thousands of small local businesses grow.
Angi Corporate CommunicationsMallory Micetich(303) 963-8352
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