Millennials are (finally) buying and remodeling their own homes, with spending on the rise
Back in the day, social scientists were worried about the so-called millennial generation, who seemed content to live with their parents, consume content on social media, and struggle to find well-paying jobs. But now, years later, that same demographic, known as Gen Y, is maturing and becoming more independent. According to the annual home renovation survey by home design platform Houzz, millennials and Gen X’ers are spending more than ever before on home renovation projects. In some categories, Gen X’ers have even surpassed the massive Baby Boomer generation. This article delves into the details of the survey and explores why more millennials are buying and renovating their own homes.
- The crowd
According to Houzz’s survey of over 46,000 homeowners, 59% of those remodeling are Baby Boomers, followed by Gen X’ers (27%) and millennials (9%). While Baby Boomers still dominate the renovation market, it’s noteworthy that younger generations are entering the field.
Only 6% of homeowners said they were renovating to sell their home, which is a decrease from 2018. Additionally, 61% of respondents said that they plan to stay in their current homes for at least eleven years or more. This indicates that homeowners are investing in long-term renovations that they can enjoy for many years.
- Median spends
The median spending on renovations was $22,000 in 2022. For those in the 90th percentile of spending, it was $140,000. The median spend on a kitchen renovation was $20,000 while the median for a bathroom renovation was $13,500.
- Kitchens and baths
Kitchens and bathrooms remain the most popular home renovation projects, and homeowners are spending more on them. Kitchen spending increased by 33% in 2022 compared to 2021, and primary bathroom spending increased by 50% in the same time frame.
- Systems upgrades
Spending was up in every category for systems upgrades, including plumbing (29%), electrical (28%), home automation (25%), security systems (22%), heating (22%), and cooling (21%). Homeowners are investing in upgrades to make their homes safer and more energy-efficient.
– According to the Joint Center for Housing Studies at Harvard University, spending on home renovations hit a record of $450 billion in 2020, and this growth is expected to continue.
– Millennials are now the largest generation of homebuyers, accounting for 37% of the market, followed by Gen X’ers at 24% and Baby Boomers at 23%, according to the National Association of Realtors.
– The pandemic has played a role in driving the growth of the home renovation market as people spend more time at home and realize the need for upgrades or additional living space.
The Houzz survey reveals that younger generations are becoming more involved in home renovation projects and are investing in long-term upgrades to their homes. This trend is expected to continue, as millennials become the largest generation of homebuyers and driving the growth of the renovation market.
The stereotype of millennials living with their parents and spending all their time on social media seems to be a thing of the past. As younger generations mature and gain more financial stability, they’re investing in their own homes and creating spaces that reflect their style and needs. With spending on the rise and millennial homeownership increasing, it’s clear that the home renovation market will continue to grow in the coming years.