Gen Y leads surge in home renovations

THREE quarters (76%) of Australian home owners are on their home renovating journey, up 12 per cent since 2015, according to Westpac’s Home Ownership Report.

Of those, almost half (47%) are considering renovating their home, one in five (20%) are currently renovating, and 70% have undertaken renovations in the past.

The nationwide study commissioned by Westpac, found renovating is now the highest priority for nearly one third (32%) of home owners who are considering a house-related activity in the next five years.

Gen Y was found to be the generation of home owners most likely to be considering renovating in the future (46%), compared to Gen X (39%) and then Baby Boomers (31%).

Westpac Group head of home ownership Chris Screen said the competitive housing market has inspired a surge in home renovations.

“With rising property prices and intense competition for property in metro areas, many home owners are looking to renovate their existing property rather than sell and risk losing their position in the market,” Mr Screen said.

A recent Westpac Herron Todd White Property Report on renovations found that Sydney’s prestige market is experiencing an upsurge in renovations with strong market conditions leading homeowners to believe there may be an increased potential for capital gains on resale.

While in Brisbane, the report found that home owners tend to renovate to accommodate their growing families, while still living in the areas they love.

“In the current market, many renovators are taking advantage of increased home equity to upgrade their homes to suit their needs,” Mr Screen said.

“If planning to renovate, home owners should take steps to find out the estimated available equity in their property, to help with the budgeting and planning,” he said.

Westpac’s online property dashboard Westpac Wonder gives customers a picture of their property, including its current estimated value, available equity and the information required to enable customers to apply for extra funds for renovations.

Generational differences amongst current renovators were uncovered by Westpac’s Home Ownership Report, with almost one in four (23%) Gen Y home owners currently undertaking renovations on their home, followed by Gen X (16%) and then Baby Boomers (13%).

When asked why they renovate, Australian home owners who had identified renovating as their highest priority in the next five years said the main reasons would be to have a nicer home (74%) and to lower home maintenance and/or upkeep (30%).

The Westpac Herron Todd White report noted home owners may also be inspired to renovate by the popularity of renovation shows on TV.