By George DeMare, Vice President Business Development
Millennials are currently the most active generation when it comes to home renovations.
The current housing market has forced millennials to purchase lower–end homes in need of fixing up. Millennials have compromised on the size and condition of their starter homes to afford homeownership.
A lack of housing inventory inflated home prices, and rising mortgage rates all have millennials renovating instead of building, selling, or moving.
While baby boomers tend to spend more when it comes to renovations, millennials tend to be more cost-conscious. Baby boomers are more likely to hire general contractors, architects, or designers. Millennials would rather get their hands dirty and are doing as many “do-it-yourself” projects as possible.
In the past 12 months, baby boomers have spent $7,523 on average on their renovations whereas millennial renovators spent around $5,693.
Millennials are just getting into homeownership, and some have built up enough equity for upgrades. They have the power to drive the renovation market by wanting to customize and personalize their older homes. Millennials like to do projects themselves, but do tend to hire professionals to install outdoor play equipment, construct built-in furniture, and install landscaping.
Millennials favor open floor plans and a big kitchen for entertaining. They are forgoing hallways in exchange for a house that flows for easy entertaining.
Functionality is also important to millennials, and minimalistic designs help make their smaller homes feel clutter free. Overall, millennials are moving to high design at a lower cost with less maintenance.
Keep in mind millennials will age and eventually grow their equity as their incomes rise. In the future, they will spend more on renovations and hire professionals for “nice-to-have” upgrades and remodels. In the meantime, stay “renovation relevant” with designs that are flexible, minimalistic, stylish, and easy to live in.