• 66% of Australians are planning to renovate
• nearly 1 in 3 plan to renovate this year
• 2015 budgets are tighter: $14,700 down from $16,130
Australians are rushing to renovate their homes, with two out of three people planning a makeover in the next four years, according to new Galaxy research commissioned by Winning Appliances.
Fewer renters planning to buy, but renting falls
Among the 24% of Australians who are renting the low interest rates are encouraging 22% to purchase a property in the next 12 months (down from 26% in 2013).
But fewer are renting overall: there’s been a sustained drop in renting over the past four years.
Home ownership is highest in Victoria, Tasmania and Western Australia, and significantly lower in other states, with Queenslanders by far the biggest renters.
Rush to renovate
Among homeowners, almost two in three (66%) are planning to renovate some time in future, with 57% planning an upgrade in the next 1-4 years, and 28% in the next 12 months. South Australians are the most likely to be renovating in the next four years, and Victorians the most likely to be waiting longer than a year to upgrade.
Australians getting thriftier
Amid the rush to renovate, Australians are tightening the purse strings. Among those planning to renovate in the next 12 months the average budget is $14,700, down from $16,130 of those planning to renovate in 2014: a drop of nearly 9%.
30% of people have a budget lower than $5,000, against 7% with a budget of over $50,000. Gen Y is much more likely to be spending top dollar than Gen X and Baby Boomers.
Rooms getting renovated: kitchens vs bathrooms
There’s a gender war brewing over what to renovate: women are most likely to plan a kitchen makeover (25% vs 19%) whereas men prioritise a bathroom upgrade (22% vs 17%). Men are also more likely to be planning a living room refurb (17% vs 13%).
Melbourne foodies may be behind that state’s big plans to renovate their kitchens compared to other states: 28% plan to redo the kitchen against a national average of 22%.
David Crane, CEO of Winning Appliances says it’s a great time to be renovating.
“Winning Appliances’ Renovation Intention Study shows that renovating remains a big passion for Australians. Our homes are our castles and we continue to invest in them and increase their value.
“Property prices remain sky high in many areas, restricting people’s ability to climb the property ladder. Improving an existing home is a popular alternative, and low interest rates mean that more Australians have disposable income to do this. In saying that, it would appear last year’s tough Federal Budget and economic uncertainty prompted Australians to be more cautious about where they spend their dollars with the average budget allocated for a renovation decreasing from last year. Interestingly, most of those with the biggest budgets are now Gen Y – they’re five times more likely than Gen X and three times more likely than Baby Boomers to be planning a $50,000+ renovation.”
“Kitchens remain the most popular rooms to upgrade – they’re the heart of the home, so it’s not surprising that many of us want to create a space that’s not only warm and inviting but practical and tailored to our needs. Advancements in appliance technology are enticing keen home chefs to upgrade the kitchen whilst soaring energy costs are also encouraging people to replace old white goods with newer, more efficient versions,” said Mr Crane.