How much does an additional home renovation cost now

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Australians spend $9,000 more a year on renovations.

The kitchens were the most updated room, with the Australians spending $20,000 to upgrade the heart of the house.

Homeowners shelled out an extra 43% on the median renovation, which now stands at $30,000, up from $21,000 the previous year, according to renovation and design platform Houzz Australia.

Spending hit a three-year high, comparing numbers from 2019, 2020 and 2021 (the most recent data obtained by Houzz).

The median cost was driven up by wealthy owners, in the top 10% spending bracket, increasing their budget by $150,000 to $230,000, according to the survey.

READ MORE: The insane prices paid for abandoned properties during the pandemic

Most Australians have saved for a refurbishment – more than eight in ten have paid for upgrades this way. (Getty)

Expenses for a renovation come mainly from savings; 82% saved money, followed by 17% by depositing a credit card, 13% by using money from the sale of a previous home, 10% by refinancing a mortgage and 7% by using a donation or an inheritance.

Between 2019 and 2020, the cost of media renovation only jumped by $1,000, but this skyrocketed due to shortages of tradesmen and equipment. which, according to the Housing Institute of Australia, could last until next year.

Most of the 2,200 survey respondents said they were renovating because they finally had the time. The second most common response was to finally have the financial means.

The kitchen has been the most popular room in the house to renovate over the past three years.

READ MORE: More Aussies are spending $1m on a home than ever before

How to Avoid That $10,000 Renovation Mistake
Australians are spending $20,000 on kitchens – the most popular room to renovate in the last three years. (Provided)

When it comes to improving street appeal, one in five Australians said they had painted the exterior of their properties in 2021.

Houzz Australia chief executive Tony Been said homeowners are still committed to investing in their properties despite the skyrocketing costs of carrying out a renovation.

“Homeowners are clearly committed to investing in their homes despite rising product and material costs driven by supply chain disruptions, and are exploring various sources of financing,” he said.

“This is particularly pronounced among recent buyers, who rely heavily on money from previous home sales to finance their plans and spend significantly more than the national median.”

Three beautifully renovated homes for sale in Australia

3/49-51 High Street, North Sydney

3/49-51 High Street, North Sydney NSW 2060 apartment for sale Renovated estate
Two-bedroom apartment, Bosch appliances in the kitchen and high-gloss blonde hardwood floors. (Domain)

1/30 Dundee Street Reservoir Victoria

1/30 Dundee Street Reservoir Melbourne renovated house for sale updated Estate auction
Behind an electric security gate, an open-plan living room and a paved outdoor area next to the living room. (Domain)

2/150 Healy Road, Hamilton Hill, Western Australia

2/150 Healy Road, Hamilton Hill WA 6163 Estate Apartment For Sale Updated Renovated
Renovated two bedroom ground floor apartment about 15 minutes from South Fremantle. (Domain)
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