Millennials Are the ‘Renovation Generation’
Millennials aren’t turned off by home improvement projects. They are more likely than any other generation to remodel any part of their home, according to a HomeAdvisor’s 2018 True Cost Survey. Millennials are twice as likely as baby boomers to complete bathroom and kitchen remodeling projects. They are also more likely to build a deck or porch and paint a home’s exterior than other generations too.
Millennials, those born between 1980 and 1994, have completed the most home projects in the past 12 months—more than baby boomers, Generation X, or the silent generation, according to the study. However, baby boomers tend to outspend all generations in home improvement projects.
Nevertheless, “the millennial generation is becoming increasingly important” in the home improvement industry, notes Brad Hunter, HomeAdvisor’s chief economist. “Most millennials have had to compromise on the size and condition of their starter homes—with many purchasing older homes in need of repair just to be able to afford homeownership. Many of the millennials who did buy a home in the last few years are seeking to upgrade. But a lack of housing inventory, coupled with inflated home prices and rising mortgage rates, has them renovating their existing homes instead of selling and moving. Luckily, many have built up the equity to afford the cost of some improvements.”
More than half of the millennials surveyed say they want to move to a home with more space or to upgrade to a nicer home. But a lack of homes for sale is keeping them stuck in place.
As such, they’ve got big plans for their current home: 82 percent of millennials surveyed—the highest compared to other generations surveyed—say they plan to spend as much as they did in the last 12 months on home improvement projects next year. More than half of millennials say they expect to spend more than they did last year.
“With rapidly rising home values spurring sudden equity, young homeowners are making improvements to beautify and personalize their spaces,” according to the report.
Daily Real Estate News | Wednesday, June 13, 2018
Source: “True Cost Report,” HomeAdvisor (June 2018)