HOUZZ & HOME. August 2016 INTERNATIONAL COMPARISON. Overview of Home Renovation in Houzz Inc.

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1 2016 HOUZZ & HOME INTERNATIONAL COMPARISON August 2016 Overview of Home Renovation in 2015

2 What We Are Doing in Our Home: 2015 Activities of Homeowners on Houzz Tables below show the frequency of home-related activities in 2015 including a breakdown of homeowners who renovated their primary residence, decorated or their primary residence, and homeowners who built a new home as their primary residence. US & 61% 61% 56% 15% 55% 65% 65% 59% 41% 63% 4% 4% 9% 8% 10% France Germany Ireland Italy Russia Spain Sweden 49% 51% 47% 47% 36% 41% 45% 57% 64% 4% 69% 6% 58% 10% 6 5% 45% 3% 44% 7% 56% 3% 60% 4% 71%

3 Why We Are Renovating vs. Buying a Perfect Home: Wanting to Stay Put Charts below show the frequency of wanted to stay in the current home or lot/land as one of the top reasons for renovating a home vs. buying a home that is already suited for the needs of the homeowner, as reported by homeowners who renovated their primary homes in vs. & Wanted to stay in the current home or lot/land 49% 49% 46% 45% 37% 45% 3 34% 41% 46% 38% 23% 11% France Germany Ireland Italy Russia Spain Sweden

4 What We Are Spending and How We are Paying Charts below show the average total spend on home renovations in 2015 and the frequency of paying for renovations with savings/personal finances, as reported by homeowners who renovated their primary homes in & Avg. total spend Paying with savings Avg. total spend Paying with savings 54, ,558 80% 53,830 76% France 37,000 77% Germany 57,000 8 Ireland 42,100 85% Avg. total spend Paying with savings Italy 44,400 75% 45,846 78% Russia 9,747 91% 29,917 73% Spain 26,200 88% 41,054 71% Sweden 26,807 79% 58,013 85%

5 How We Are Meeting Our Budget Goals Charts below show the frequency of renovations exceeding, staying at, and coming below the initial budget, as reported by homeowners who renovated their primary homes in & No initial budget At budget Under budget Over budget 31% 31% 3% 3% 36% 38% 33% 3% 37% 18% 5% 46% 38% 5% 34% 53% 1% 26% 28% 3% 3% 44% 37% 36% 21% 38% 19% 1% 48% 40% 31% 37% 26% 31% 27% 31% 20% 28% 31% 34% 39% 48% 27% 28% 3 France Germany Ireland Italy Russia Spain Sweden

6 Where We Focus Our Renovation Priorities: Top 3 Interior Spaces Tables below show the frequency of top three interior space upgrades, as reported homeowners who renovated their primary homes in US & 26% (non-master) 25% (non-master) 25% 26% 2 23% 20% (other) 2 Bed (other) France Germany Ireland Italy Russia Spain Sweden 27% 40% Bed All interior spaces Bed 3 All Interior spaces 38% Bed 34% Bed % 23% 2 19% 31% 31% Bed 27% Bed 28% 3

7 How Much s and s Cost to Renovate Charts below show the average spend on kitchen and bath renovations (excluding additions), as reported by homeowners who renovated their primary homes in Average spend is reported in Euros. (at exchange rate as of Dec. 31, 2015). spend for U.S.,, and refer to master bath spend. & Average spend per (converted to US$) N/A N/A 20,439 13,396 France 6,490 4,790 11,756 9,483 Germany 10,640 12,220 Ireland 4,700 4,880 Italy 4,450 6,220 12,935 7,907 Russia 1,655 1,403 N/A Spain 5,525 7,580 3,470 10,182 4,540 Sweden 13,369 13,626 6,934 7,269

8 Getting Help During Renovation Charts below show the frequency of overall professional hiring during renovations, as reported by homeowners who renovated their primary homes in & Professional hiring in % 81% 89% 86% 89% 76% 79% 8 94% 88% 8 90% 85% 9 France Germany Ireland Italy Russia Spain Sweden

9 Methodology The annual Houzz & Home study is the largest survey of residential remodeling, building, and decorating activity conducted. This survey covers every aspect of home renovation in 2015, from interior remodels and additions to home systems, exterior upgrades, and outdoor projects. This includes historical and planned spends, professional involvement, and motivations and challenges behind these projects, as well as planned activities for The 2016 Houzz & Home survey gathered information from 229,541 respondents worldwide, representing the activity of the more than 40 million monthly unique Houzz users. The Houzz & Home survey was sent via to registered users of Houzz and fielded in March June The Farnsworth Group, an independent market research firm, conducted the survey. The current report relies on responses from 14 countries of homeowners on Houzz (n=187,757) and homeowners on Houzz who renovated in 2015 (n=105,075). Individual country reports can be found on info.houzz.com/research.

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