Renovation blowout: We spent a record $12b doing up our homes during the pandemic

Australians have spent more on home renovations during the pandemic years than at any other time since records began 50 years ago.

New data shows how houseproud we became, particularly once the initial shock of the pandemic began to wear off.

As COVID landed, spread and paralysed much of Australian life, with state and international borders closed and entire cities locked down, we began spending more on renovations — up 10 per cent to $9.2 billion.

But last year it must have felt safer to bet the house, with Australian Bureau of Statistics figures showing renovators poured a massive $12.3 billion into renovating their homes, up 33 per cent on 2020.

That’s almost double what we spent on renovations just 10 years ago.

Alongside the pandemic forcing us to stay home was the Federal HomeBuilder scheme that paid out between $15,000 and $25,000 to  those willing to undertake a major renovation.

It was designed as a stimulus measure in response to COVID, and since its launch, almost 25,000 renovators have applied.

But not everyone was driven by the promise of free money — others were already designing their dream renovation before COVID arrived.

Morgan McGahan was one of them, and she was not about to allow a once-in-a-lifetime pandemic to derail her plans.

From tired beach shack to stunning dream home

Her family bought their seaside home on the Sunshine Coast almost 10 years ago for about $400,000.

In 2019, they had already begun planning to convert their ageing beach shack into a two-storey home with water views.

Ms McGahan said moving did not feel like an option, because this was the only home her seven-year-old son Watson and five-year-old daughter Evelyn had known.  

“This is a really special spot for us,” she said.

“We got married out on that beach, we brought our two babies home here.

Demolition at the Golden Beach site began just as Queensland Premier Annastacia Palaszczuk and chief health officer Jeannette Young ordered the entire state to stay at home, and that most businesses be shut down.

Although building could continue, they could not escape the spectre of COVID.

“Once we had realised that we were safe in our jobs, and that yes, we can actually pay for this renovation with what’s going on, and all the craziness – it continued to flow from there.”

‘Oh mate, we are flat out’

Zane McCarthy from Top Plate Building was the renovating builder behind the McGahans’ project.

He said it was no surprise to him that renovation numbers were breaking records.

“Oh mate, we are flat out — we get enquiries, probably two to three a week, and everyone’s renovating,” he said.

He said people were watching their house values go up, but it was often not enough to buy something bigger.

“And to buy a new house somewhere else is just not affordable.”

Mr McCarthy said one of his projects was a major renovation so the daughter could live nearby.

“They looked at house prices … in the area and it wasn’t affordable so they’re renovating this place and they’re all staying together.”

What happens when all the cheap homes are gone?

The housing crisis across parts of the country is now critical, with those unable to buy also being turned away from the rental market.

Pastor Dale Dowler, from The Shack Community Centre on Queensland’s Sunshine Coast, has spent decades working with those either sleeping rough or at risk of homelessness. 

He said the rise in renovations might mean higher rents for homeowners, but it also meant fewer affordable homes for those who needed it.

“People are investing in homes and then putting it back on the rental market, but it has priced a lot of community out of that rental market,” he said.

And he uses himself as an example, after paying to renovate his own home so his children have a place to call home.

“We bought our house 18 years ago and the cost was $116,000 – that same renovated house now is over $700,000.”

And finally, the flow-on from the floods

It is not just the price of homes that is more expensive. 

A national lack of building supplies is likely to become more intense as parts of the country rush to rebuild after devastating floods.

Mr McCarthy said while his projects continued, there had to be a knock-on effect from the flood disasters.

“We’re probably already delayed a week to get materials we already ordered.

“It’s going to be hell for 12 months.”

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