Homeowners spend record $16.6b on renovations as housing affordability worsens

Australian spending on home renovations has shot to a record high. Picture: NCA NewsWire / Sharon Smith As affordability deteriorates, Aussies are increasingly locked in unsuitable homes and, rather than selling, are turning to home renovations, with new analysis revealing renovation spending has hit a record high of $16.62b. Home prices have grown by an average of about $180,000 since 2022, while building costs and interest rates have also soared, compounded by construction labor shortages. ABS figures indicate that even after adjusting for inflation and rising building costs, Aussies spent $15.72b over the 12 months between June 2025 and June 2026. MORE: Thousands of unfinished homes to be abandoned Renovation spending hit a 51 year high. Source: ABS/Primara Research/Temple & Webster Senior economist for the Housing Industry Association, Tom Devitt said the trend originated in the Covid years when government grants were introduced and people were at home more. “This latest trend really started during the pandemic, and for the same reason that there was a big boom in new home building, there was also a boom in renovations activity,” Mr Devitt said. “First, in early 2020, inter...