With the property market remaining tight, homeowners are spending more than ever on renovations.
Australian Bureau of Statistics figures show the amount owners are spending on home improvements rose by $26,900 in the past 12 months with the average spend now $202,270.
In all, 10,308 homeowners took out renovation loans in the three months to May 2023.
At the height of the pandemic in 2021, renovation work reached its second-highest level on record, with low interest rates, increased savings and more time at home, encouraging many owners to undertake an upgrade.
Master Builders Australia chief executive Denita Wawn says there was big spending on homes in the Covid years as people couldn’t spend their discretionary dollars elsewhere.
“(Including) $60 million dollars that Australians spend each year on overseas travel alone.”
A shortage of properties means homeowners are staying longer in their properties and renovating instead.
The average period of ownership is now 13.5 years compared with 9.3 years in 2010.
