The number of owner-occupiers renovating their homes has risen by 21 per cent since 2015, according to research by Westpac. The research also found that the number of Australian homeowners considering selling decreased by 11 per cent compared to last year, dropping back down to the same level as 2015.
These findings are supported by recent research from Master Builders Australia predicting a $44 billion boom in renovations across the country over the next five years.
Westpac’s home ownership spokesperson, Andy Wright, said homeowners could be opting to renovate rather than sell to save money and avoid the hassle of moving.
“It’s no secret Australians love renovating, but those who are reaching key life milestones, such as getting married or having a baby, may also be increasingly choosing to renovate to avoid the stress and logistics of moving during an already busy time.”
“Growing families also seem to be purchasing properties that need some TLC, with plans to upgrade in the future when savings have increased.”
Rising stamp duty and other moving costs could also be playing a part in deterring homeowners from re-entering the property market. The Housing Industry Association found stamp duty was the equivalent of 1 per cent of the median house price in 1982, but is now as much as 5.2 per cent in some states.
This may explain why more Aussie homeowners – particularly those dealing with the costs of getting married or raising children – are choosing to renovate rather than upgrade, making use of lines of credit and other home improvement loans.