Australians spend 31% of income on kitchen renovations

New data from Compare the Market reveals that Australians spend an average of $24,014 when renovating the kitchen,ⁱ which is among the highest in the world.

 

As a proportion of annual income, this figure represents close to 31% of the $84,845 that the average Australian earns each year.ⁱⁱ

 

The lowest in the study was found to be Hong Kong at 13% of average annual income, with Denmark the highest at 84%. Hong Kong locals spend, on average, $5,321ⁱⁱⁱ on kitchen makeovers, whereas the Danes spend a whopping $60,996 on average.^iv

 

A survey conducted by the Housing Industry Association last year found that 71 per cent of Australian kitchen renovations were performed in homes between 11 to 20 years old.^v Nationwide, the value of residential alternations and additions were at an all-time high in November 2020 with a 5.6 per cent increase.^vi

 

Over the ditch, New Zealanders spend slightly more on their renovations than Aussies at $30,573 for a typical kitchen, which represents nearly 32% of the average salary.^vii

 

As for the countries which outperformed Australia in the analysis, Singapore,^viii France,^ix Ireland^x and Portugal^xi (alongside Hong Kong) all spend less than 24% of annual income when renovating a kitchen.

 

As well as Denmark, some of the higher spending countries are Canada^xii (46% of annual income) and Germany (44%).^xiii

 

Compare the Market spokesperson Simon Downes said: “Aussie homeowners are very house-proud and don’t mind spending the big bucks to upgrade and improve our kitchens, especially if we like to regularly entertain family and friends. Not only does a great kitchen reno impress our guests, but it can also be a great investment in our property and pay off further down the track when it comes to selling. So, it’s as much about investing as it is improving.”

 

The average cost of a kitchen renovation in each country:

Country	Average cost in AUD
Denmark	$60,996.22
Switzerland	$50,151.47
USA	$35,491.02
New Zealand	$30,572.55
Australia	$24,014.00
Canada	$23,721.82
UK	$18,320.30
Ireland	$14,864.23
France	$11,561.06
Italy	$10,735.27
Singapore	$10,619.81
Germany	$8,257.90
South Africa	$7,344.41
Portugal	$5,780.53
Hong Kong	$5,320.95

 

To find more information please visit: https://www.comparethemarket.com.au/home-contents-insurance/global-kitchen-renovations/

 

N.B. International figures were converted on 02/11/2020 using XE Currency Converter.

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