Home renovations in 2025

Renos are always pretty hot, but what’s the outlook for 2025? We take a look at some of the key trends affecting the market, where contractors can add value, and how you can get more business, too.

In this Article:

We spend more than $1bn per month on renovations

Disposable income is down and inflation up – so how does that affect things?

Home security systems are a big trend

Renovations have always seemed a quintessential part of Aussie culture. And rightly so. After all, who doesn’t love to get the sledgehammer out, give things a good whack and end up with a whole new look?!

You only just have to look at the continued success of The Block (20 seasons and counting) for confirmation of that. And, yep, it’s strictly the renos we tune in for, not the bitching, the drama and the underhand tactics along the way. (We’re better than that. We think.)

Of course, home renos seemed to go through a massive pandemic peak, as people weren’t able to spend money on travel and were spending more time at home. Realising their living space wasn’t all they thought it was, they ploughed money into renos – many times including new home office space.

To illustrate the extent of that growth, the Australian Bureau of Statistics reports the monthly value of approved home renos was $1.14 billion in March 2021, compared to an average monthly value of $680 million in 2019. Growth? You betcha.

But has the reno boom continued through inflation, rising house prices and everything else that’s been going on? You bet it has – with that $1 billion+ per month reno spend continuing through 2023, too.
“We did have that that real crazy time in the market where everything seemed to just be a little bit out of control, and possibly nothing that any of us had seen for a number of years,” says Tracie Ellis, Founder and CEO of Renovators Directory, and Managing Director of TAE Projects.
“It has settled down a bit, but there is still that strong demand for renovations, absolutely – however, the big problem is the lack of tradies.”

Good news for contractors? Quite possibly.

It’s not just a lack of tradies causing difficulties in the reno market – other factors are playing into it, too.

While inflation is getting under control, albeit slowly, and interest rates have steadied, they’re not going to come back down to the levels they were a couple of years ago any time soon.

Disposable income is therefore down, and a tradie shortage is real and is slowing down work.

Throw into the mix the number of builders going bust – with more than 200 on average going to the wall in Australia every single month, compared to 2022’s 65 per month – and the impact is pretty clear.

However, as we’ve seen, it’s not slowing down the amount of money people are spending on renos – which is good news.

Motivation for renovations

Electrical contractors can play a major role in the success of a renovation project, says Tracie – both in terms of the technical experience they bring and the rational, level-headedness that’s needed for a reno project to be successful.

“A while ago it was generally the builder who coordinated the project and all of the trades, but today it’s a real mixed bag – it could be a builder, it could be an investor, developer, project manager, or a mum and dad.”

“One thing that is important, however, regardless of who it is, is to park emotions at the door. You’ve got to plan, plan, plan, plan and plan some more.”

And an electrical contractor is paramount here.

“It is crucial to consult with a licensed electrician in the planning stages, way before a sledgehammer is swung around. The professional electrician can assess the existing wiring, they can recommend necessary upgrades and they can ensure all the work that needs to be done or anticipated meets safety codes and regulations.

“So investing in that expert advice upfront prevents all the costly mistakes and potential hazards down the line, because the electrical work really underpins the functionality and safety of every home. And it’s not an area at all where an amateur can spin their hand at a DIY – although you’d be surprised at how many people think they can…”

Renovations in 2025 – where are people concentrating?

Whether the purpose of the project is renovating to sell or renovating to live in, the thinking should be similar – adding value. After all, even if someone intends to stay in a home for the foreseeable, the reality today is that the property will be sold at some point down the line. We aren’t living in times when homes are passed down through generations.

“It’s boring to say these days because it’s so predictable, but it really is the kitchen and bathrooms that are the first ports of call,” says Tracie.

Once those are sorted, what are the things electricians should ensure they recommend for renovations in 2025? A good security system is something that every home renovation should include, believes Tracie.

“There’s not just the financial crisis and housing crisis going on right now, we’ve got a youth crime crisis,” she says.

“A good security system is something you can’t put a price on – it’s just essential.”

Renovations talk

However, when you’re working on – or trying to attract – home renovations projects, it’s important to blow your own trumpet a bit. Something Tracie believes electrical contractors aren’t always the best at.

“I do feel electrical contractors fly under the radar a bit in terms of the value they can add. There’s so much they can add to a reno project but unless you’ve got a good understanding of everything they can do, it’s impossible to know.”

So, your number one renovation trend for 2025? Self-promotion. Talk the talk. Post on social media. Update your website. It matters.

You can thank us later.

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