Driving The Home Improvement Market: Older Homeowners and Millennial

Unlike the real estate market where it suffered a major decline over the past months and years, it is a different story when it comes to house improvement. The home improvement market is booming despite the housing market underperforming. A lot of homeowners resort to do-it-yourself home renovations and improvements because to them, a bit of personal touch when it comes to renovating or improving their homes.

Know The Difference Between Selling Your House As Is and Doing Home Renovations

It is great to know that the home improvement market is doing well. Experts would normally check the demographics of those who are doing more home improvement in their own homes. Jessica Guerin of Housing Wire wrote an article about the older homeowners is driving the home improvement market. Read the article below and learn more.

Older Homeowners are Driving the Home Improvement Market

Harvard study says Baby Boomer spending on accessibility improvements will soar

Armed with record amounts of home equity and an expressed desire to remain in their homes as they age, older homeowners are driving the home improvement market.

A recent study by the Joint Center for Housing Studies at Harvard University revealed that households 55 and older account for half of all current home improvement spending.

And, as Baby Boomers reach their 70s and 80s, researchers say their investments in home modifications to enhance accessibility will soar.

Home improvement spending set a new high in 2017, reaching $424 billion, according to the report, which attributed the upward trend to a steady increase in home prices and an aging population.

“Rising house prices are good news for the remodeling market in that they are associated with higher home improvement spending,” the report stated. “Knowing that their homes are increasing in value provides owners an incentive to invest in their properties.”

Rising home prices also translates to rising equity levels.

The report notes that with more equity in their homes, owners have “a ready source of funds if they want to finance their projects.”

Older homeowners are also living longer and are increasingly willing to spend money on home improvements that will allow them to age in place.

Nearly 3 million homeowners, of which more than 72% were at least 55 years old, said they were taking on one or more projects that would improve accessibility.

Further, the report revealed that homeowners who are remodeling to enhance accessibility spend significantly more than those with other motivations. See full post here…

Data show that older homeowners are the ones who are driving the home improvement market. The rising house prices are good news for the remodeling market for they are associated with higher home improvement spending. This is also because older homeowners tend to live longer and normally opt to spend money on home improvements in their homes.

We now know that older homeowners drive the home improvement market, let’s find out how the younger generation impacts the home improvement market. Builder wrote an article about millennials and home improvement. Check out the article below.

Millennials Take the Lead in Home Improvement Projects

This group is more likely than any other generation to remodel any part of their home—and spend more per renovation.

HomeAdvisor on Tuesday released its True Cost Report on generational trends in home improvement, the negligible impact of rising interest rates on homeowner decision making, and the growth of home improvement spending.

Findings of the report show that 80% of homeowners surveyed plan to stay in their existing homes rather than move, and as a result are planning to spend more on home improvement projects this year, with half of all respondents considering a remodel.

The report, authored by HomeAdvisor’s Chief Economist Brad Hunter, shows that millennials, for whom homeownership rates are increasing rapidly, are more likely than any other generation to remodel any part of their home—and take on the highest number of projects. While other generations take on fewer projects, millennials tend to spend more per renovation.

“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,” said Hunter. “Many of the millennials who bought 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.” Learn more here…

It is a good thing to know that apart from older homeowners, millennials are taking the lead also when it comes to various home improvement projects. Millennials’ homeownership has also increased rapidly, and the majority of them are keen on remodeling their houses at least once a year.

This is also evident in the trends to watch in 2019 for home improvement market trends, and Jamie Gold wrote about this in her article at Forbes.com

Five Home Improvement Trends To Watch In 2019

Do you follow the home improvement industry? If so, the Home Improvement Research Institute thinks you should pay attention to these key trends in 2019. The nonprofit trade association is comprised of global building product manufacturers, national retail chains and allied organizations on the media and information side.

These five takeaways were among the key points industry experts shared at HIRI’s 2018 Industry Insights Conference last September in Oak Brook, Illinois (with context provided).

DIYers are more likely to be Millennials.

Nearly a quarter of the U.S. population made home improvements in the last year and only 7% of them worked with a professional. “DIYers spend more than 60 hours per week on TV and digital devices, including computers and smartphones,” Peter Katsingris, senior vice president of insights at Nielsen, told conference attendees. “The technology and the choices it provides make DIY a realistic option for people.” (A quick search of YouTube shows 252,000 results for home improvement DIY videos, potentially a useful albeit cluttered marketing platform for reaching this massive demographic – or figuring out how to wire your new smart home security system.)

Remodeling activity isn’t slowing down anytime soon.

The steady increase in remodeling activity will continue through 2021, HIRI experts predict. (With home prices increasing, new construction harder to find in some areas of the country, and homeowners aging in place, people are staying put and remodeling.) “With the existing house stock averaging 38 years old, much of the inventory is in need of updating,” noted Mark Boud, senior vice president and chief economist at Hanley Wood/Metrostudy. Read more here…

The home improvement market has not been affected by the increase in prices in houses, even spending money on home renovations and repairs. It is also good to know that both the older homeowners and the millennials favoring home improvement and renovations in their houses, driving the entire home improvement market up.

There you have it, the home improvement market is going up, which means homeowners know the value of doing home repairs and improvement for it helps appreciate its value. However, doing home repairs and renovations can be very costly and might get you out of budget. If house repairs and want to sell your house fast and as is, Dependable Homebuyers can help you sell your house fast. To learn more, visit https://www.dependablehomebuyers.com/as-is, and let’s get started.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
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