In the face of a softening property market, bouncing consumer confidence, rate rises and continued financial pressures, new research has revealed homeowners are still looking to invest in their homes in 2024.
A survey of over 1,000 Aussie homeowners by online tradie marketplace hipages revealed 64% intend to complete work on their homes in the next 12 months. This work goes beyond maintenance too, with close to half (46%) planning to spend an average of $7,000 on home improvements alone.
Architect and member of hipages’ customer advisory board Fabricio Siqueira, says there are a few key factors at play, driving this demand.
Repairs and maintenance never stops
Although there is a slowly-growing pool of new builds to help with Australia’s ongoing housing crisis, there are 4.1 million homes in Australia over 50 years old, meaning regular maintenance and upkeep is a must. Maintenance and repairs are an extremely important part of both homeownership and the home improvement industry as a whole.
Even if a home hasn’t hit the 50-year mark yet, chances are it will need some level of work due to our harsh climate and multiple natural disasters in recent years from fires to floods, hail and more.
Maintenance and repairs, from fixing leaky taps to checking electrical connections, are extremely important for homeowners to ensure their homes stay functional and comfortable. A well-maintained home will also have a higher value than one that is not – an important consideration when it comes to selling. It’s also extremely beneficial for the housing market as a whole, ensuring older homes will remain liveable for generations to come.
Improvement vs. upgrading
Beyond maintenance, it’s also great to see that Aussies are looking to add value to their homes through renovations and improvements.
There are a number of driving factors influencing this demand.
- The value of property
The Australian housing market has reached a somewhat volatile period. Despite the prices of homes steadily increasing across the nation, there’s still a reluctance for homeowners to sell, and they’re choosing to renovate instead.”
There are a few reasons why Aussies are choosing to improve their current homes – and the uncertainty of housing is a big one.
House prices have been rising for several months, and are expected to continue this year. So although it’s a seemingly great idea to sell your property during this time, with a housing shortage, where are they going to move to once they sell?
They might as well invest in the home or property they currently have, improving it so it’s more ‘liveable’ to their standards and increasing its value to perhaps sell in the future.
By far, the most value added on a renovation is when it is done with a proper design prepared by a registered architect. The Architeam and University of Melbourne revealed that every $1 invested in architect’s fees in a renovation resulted in $11.4 dollars gained in capital appreciation.
- Supply and demand
Property owners are well-informed about the housing market, with the state of the industry driving news headlines for years. The government’s goal to build 1.1 million new homes this year has been top of mind – but so has the fact that it’s unlikely we’ll meet this goal due to ongoing labour and material shortages.
Homeowners are well aware of the current housing shortage, so staying put and investing in their current home can be the smartest and safest option.
- Make yourself at home
Meanwhile, other factors are also causing Aussies to stay home and take a good look at the place. While domestic and international travel prices remain high, and the cost of petrol continues to rise, it’s a lot cheaper for homeowners to stay at home.
Particularly for those who work from home, it’s important to ensure that the space you spend the majority of your time in is making you happy and comfortable. Interior design, extensions, and even smaller freshen-up jobs are the kind of jobs homeowners request when they’re looking to make their house the right home for them.
- Go with the flow
Homeowners have had to navigate increasing interest rates over the past 12 months. With the RBA announcing a pause on interest rate changes, those who own property have peace of mind knowing they won’t need to adjust their budgets to pay off their home for the time being.
Having the opportunity to settle into a financial routine, homeowners can take a better look at their finances and see how much they can spend towards making their home better, rather than taking the risk of selling and buying a new home.
Since the beginning of the year, hipages has seen an increase in more than 5,000 tradies coming to its platform, to connect to homeowner jobs, showing that they’re looking to bolster their job schedules. This is a great sign for these homeowners looking to do work on their homes this year.
