Home Renovation In 2024: 15 Facts & Stats To Consider Before Renovating

Table of contents

• Timely Home Renovation Stats & Facts For 2024 
• Evergreen Home Renovation Stats & Facts
• Next Steps To Home Renovations In NYC

Home renovation is fun. There’s art, design, sledgehammers. Bathroom renovations transform everyday spaces into mini-spas, and a well-implemented kitchen remodel can make every snack an event. But even the most mercurial clients aren’t commissioning renovation services every week. Home renovation is a large, sometimes-in-a-lifetime undertaking. And because of this, the topic can be mired in mystery.

To help anyone considering a remodel find transparency on key, high-level home renovation topics in 2024 and beyond, we’ve compiled 15 priority facts and home remodeling statistics offering valuable insights to point renovations in the right direction.

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[#Timely]Timely Home Renovation Stats & Facts For 2024[#Timely] 

1) The Price Gap Between Renovated And Unrenovated Homes Is Widening 

New Western predicts a surge of approximately 24 million homes hitting prime renovation age in 2024, offering optimism for the housing market's recent inventory woes and a golden opportunity for savvy investors or new homeowners looking for a fixer-upper to maximize (READ: Are Fixer Uppers In NYC Worth The Work?). 

As roughly 80% of homes in the United States age past the two-decade mark, a growing pool of real estate investors is poised to tackle the challenge of rejuvenating older properties, potentially reshaping the market landscape well into 2027. Moreover, with nearly 40% of America's 137 million houses celebrating their 50th birthday or more, the demand for renovations continues to surge in New York City and beyond.

2) Americans Renovate Their Homes Roughly Every 3-5 Years

According to sources, Americans renovate their homes every 3 to 5 years, undertaking these projects roughly 2 to 3 times per decade, with larger renovations being slightly less frequent. This reflects a continual desire among homeowners to refresh their living spaces, driven by evolving needs and design trends (READ: Interior Design Trends For 2024).

3) Consistent Spend On Homes Despite Challenges

Despite obstacles like stagnant home sales, increasing labor expenses, and persistent supply chain disruptions, the home improvement sector is projected to reach $450 billion by the close of 2024. “While this is down from $481 in 2023, this year is expected to easily surpass the robust levels seen early in the pandemic,” Abbe Will from the Remodeling Futures Program told Joint Center For Housing Studies at Harvard University. 

4) Larger Renovations On The Rise 

Despite rising costs, the NKBA found large renovations were up 15% in 2021, and rose an additional 13% throughout 2023, with double-digit growth expected through 2024. If you’re interested in large-scale renovation, learn more about our Full Home Renovations In NYC. 

5) Demand for Professional Assistance Remains High

According to Houzz, after August 2023, a vast majority of homeowners (91%) enlisted professional assistance for their renovations, and 88% of those planning projects for 2024 intend to follow suit. General contractors, electricians are particularly full-service design-build firms are in high demand, emphasizing the essential role of professional expertise in home renovations.

6) The Majority Of Americans Would Rather Renovate Than Move

Per sources, 61% of Americans would rather renovate than move, citing their desire to avoid uprooting family and routine as the main deterrent of moving. HIgh interest rates haven’t helped. 

7) Kitchen Renovations Yield Biggest Returns 

Per last year’s Houzz & Home Study, during renovation projects, 92% of homeowners face challenges, with one-third struggling to find suitable service providers and 28% encountering difficulties in selecting the right products. These hurdles can lead to delays, budget overruns, and compromises in the quality of the final result. Therefore, it's crucial for homeowners to carefully research service providers and products to mitigate these risks and ensure a successful renovation. For an idea of the proper vetting process, read our blog about the 5 Most Asked Questions When Considering A Design-Build Firm In NYC.

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[#Evergreen]Evergreen Home Renovation Stats & Facts[#Evergreen] 

8) Kitchen Renovations Yield Biggest Returns

After registering 74% return in prior years, returns from kitchen renovations are pretty much flat year over year. According to updated info, 2023 saw kitchen renovations warrant an approximate average return of around 96.1%, while HVAC installations warranted the best ROI of any upgrade at 103.5%. These statistics highlight the importance of investing in tangible renovations and reassures homeowners that upgrading their kitchen not only improves their living space but also provides a financial return in the long term.

9) Not All Contractors Are Created Equal

With various styles and options to select from, choosing a contractor in New York City is not easy. When looking to hire a contractor for a NYC renovation, consider the following 3 Biggest Mistakes People Make When Choosing General Contractors, along with the differences between design-build vs design-bid-build contractors. Also make sure to do research up front and get quotes from multiple contractors. 

10) Timelines Are Not Concrete

When renovating, the initial timeline should be considered a best case scenario. Even the most thorough contractors, who plan extensively ahead of time, can run into an unexpected hiccup that extends project length. For instance, see these Common Surprises When Renovating An NYC Apartment to understand certain unforeseen derailments simply cannot be planned for. Furthermore, the NKBA suggests timeline issues will only continue to escalate from highs seen in 2023, with product and labor shortages being the key factor. Quality contractors will always be transparent as possible about timeline issues, keeping everyone privy to all updates in a timely manner.

11) NYC Homes Are 90-years-Old, On Average

Renovations are on the rise for a reason. According to MHN, the median age of a residential building in NYC is about 90 years, with many of the properties deriving from the construction boom between 1900 and 1920 which catered to the city’s 63% rise in population.

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12) Gut Renovations And Home Renovations Are Not The Same

A remodel or renovation can include updating specific aspects of the home, without completely tearing down the current version of the room looking to be updated. A gut renovation requires tearing down the entire property, down to the studs. More often than not, full gut renovations are not needed. For more information, read our full breakdown on Gut Renovations In NYC 101.

13) Choose Appliances Early In Renovation Process

Appliances often end up being a focal point in their space, which is why they should be chosen up front in the renovation process and incorporated into the design early. A full-service design-build firm will actually guide clients through the selection of appliances, making sure these key pieces offer both form and function upon installation at the outset of construction.

14) Consider Resale Value 

While people often renovate for personal reasons, with no intent to sell, considerations beyond personal taste should still be weighed. While there are various renovation strategies to consider that will maximize resale value, make sure decisions aren’t drastic and too unique to sell down the line.

15) Check For Code & Building Requirements  

Before renovating, research code and permit requirements for your home or building. Otherwise your grandiose ideas may get squashed at a very inopportune time. A reputable design-build firm will help guide this entire process on behalf of their clients.

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[#Next]Next Steps To Home Renovations In NYC[#Next]

Looking to learn more about New York City home renovations before diving into your own? Find priority content in our Learning & Design Center, timely insights on our NYC Renovation & Design Blog and before + after breakdowns of Our Work. Or, if you’re ready to renovate, contact us today and start the process with one of our design consultants.