Baby Boomers and Gen Xers Drove Remodeling and Spending in 2019
People across age groups continued to use cash from savings to fund their projects. Most hired pros
Baby boomers and Gen Xers drove the majority (85%) of renovations in 2019 and spent higher amounts on their projects compared with younger generations, according to the 2020 U.S. Houzz & Home study.
People renovating their homes across all age groups continued to use cash from savings to fund their projects, the study found. And the majority of renovating homeowners hired at least one professional to help with the project.
Read on to learn more about what renovating homeowners across the generations spent, how they paid for their projects and which pros they hired.
People renovating their homes across all age groups continued to use cash from savings to fund their projects, the study found. And the majority of renovating homeowners hired at least one professional to help with the project.
Read on to learn more about what renovating homeowners across the generations spent, how they paid for their projects and which pros they hired.
The Houzz & Home survey is the largest publicly available survey of residential remodeling, building and decorating activity in the U.S. The 2020 survey — fielded between Jan. 2 and March 5, prior to the shelter-in-place orders related to the coronavirus pandemic — collected information from more than 87,000 U.S. respondents.
Baby Boomers and Gen Xers Drove Renovations in 2019
This graph shows the share of renovating homeowners in 2019 by generation. Baby boomers (ages 55 to 74) and Gen Xers (ages 40 to 54) made up 85% of those on Houzz who renovated in 2019, up from 83% in 2018.
Millennials (ages 25 to 39) accounted for 12% of renovating homeowners on Houzz in 2019, a smaller share than the 20% slice of the U.S. population they represent.
This graph shows the share of renovating homeowners in 2019 by generation. Baby boomers (ages 55 to 74) and Gen Xers (ages 40 to 54) made up 85% of those on Houzz who renovated in 2019, up from 83% in 2018.
Millennials (ages 25 to 39) accounted for 12% of renovating homeowners on Houzz in 2019, a smaller share than the 20% slice of the U.S. population they represent.
Renovation Spending Varied Widely in 2019
Renovating homeowners spent anywhere from $1,000 to more than $100,000 on their projects in 2019. These figures reflect both DIY projects and those done with professional help.
Renovating homeowners spent anywhere from $1,000 to more than $100,000 on their projects in 2019. These figures reflect both DIY projects and those done with professional help.
Baby Boomers Had the Highest National Median Renovation Spend in 2019
Renovation spending last year was not equal across the generations. Baby boomers had the highest national median spending amount, at $15,000. Gen Xers and seniors (ages 75 and up) were next, with a national median renovation spend of $12,000 for both. Millennials had a median renovation spend of $10,000.
“Median” refers to the midpoint spending level, meaning half of homeowners spent more and half spent less. (Again, these numbers include both DIY projects and those in which a pro was involved.) The median should not be interpreted as the likely cost of a particular project, since remodeling costs vary widely by location and project scope and can be much higher in some metropolitan areas and for major remodels.
The yellow bars of the graph show renovation spending by homeowners at the 90th percentile — homeowners in the top 10% in terms of their renovation spending. Gen Xers in the top 10% started their renovation spending at $82,000 and went up from there. Baby boomers in the top 10% started at $80,000.
Renovation spending last year was not equal across the generations. Baby boomers had the highest national median spending amount, at $15,000. Gen Xers and seniors (ages 75 and up) were next, with a national median renovation spend of $12,000 for both. Millennials had a median renovation spend of $10,000.
“Median” refers to the midpoint spending level, meaning half of homeowners spent more and half spent less. (Again, these numbers include both DIY projects and those in which a pro was involved.) The median should not be interpreted as the likely cost of a particular project, since remodeling costs vary widely by location and project scope and can be much higher in some metropolitan areas and for major remodels.
The yellow bars of the graph show renovation spending by homeowners at the 90th percentile — homeowners in the top 10% in terms of their renovation spending. Gen Xers in the top 10% started their renovation spending at $82,000 and went up from there. Baby boomers in the top 10% started at $80,000.
Cash From Savings Continued to Fund Remodels in 2019
Cash from savings remained the top funding source (83%) among homeowners who remodeled, even in projects with a higher spending amount (over $50,000). Credit cards were the second choice (38%) to pay for home renovations in 2019.
Cash from savings remained the top funding source (83%) among homeowners who remodeled, even in projects with a higher spending amount (over $50,000). Credit cards were the second choice (38%) to pay for home renovations in 2019.
Cash Was King Across the Generations
Cash from savings was the most popular payment method for renovating homeowners both young and old, the study found.
Younger homeowners were more likely to use credit cards (45% for millennials) than were older homeowners (35% for baby boomers).
Older homeowners were more likely to rely on cash from a previous home sale (11% for baby boomers and seniors) compared with younger homeowners (9% for Gen Xers and millennials).
Cash from savings was the most popular payment method for renovating homeowners both young and old, the study found.
Younger homeowners were more likely to use credit cards (45% for millennials) than were older homeowners (35% for baby boomers).
Older homeowners were more likely to rely on cash from a previous home sale (11% for baby boomers and seniors) compared with younger homeowners (9% for Gen Xers and millennials).
Older Generations Were More Likely to Hire Pros in 2019
The majority of renovating homeowners across the generations hired pros for their projects in 2019 — anyone from a painter or tiler to a general contractor or interior designer. But pro hiring was most common among older generations.
In 2019, 93% of seniors hired pros and 89% of baby boomers did, while 85% of Gen Xers and 84% of millennials did.
This graph shows the types of pros that homeowners hired last year. Construction professionals include general contractors, kitchen or bathroom remodelers, builders and design-build professionals. Design-related professionals include kitchen or bath designers, architects, interior designers or decorators, landscape architects or designers, and lighting designers. Specialty pros include other professionals (for instance, painters or tilers) hired directly by the homeowner rather than by the construction manager for the project.
The percentages here do not add up to 100% because some renovating homeowners hired more than one pro.
The majority of renovating homeowners across the generations hired pros for their projects in 2019 — anyone from a painter or tiler to a general contractor or interior designer. But pro hiring was most common among older generations.
In 2019, 93% of seniors hired pros and 89% of baby boomers did, while 85% of Gen Xers and 84% of millennials did.
This graph shows the types of pros that homeowners hired last year. Construction professionals include general contractors, kitchen or bathroom remodelers, builders and design-build professionals. Design-related professionals include kitchen or bath designers, architects, interior designers or decorators, landscape architects or designers, and lighting designers. Specialty pros include other professionals (for instance, painters or tilers) hired directly by the homeowner rather than by the construction manager for the project.
The percentages here do not add up to 100% because some renovating homeowners hired more than one pro.
Younger Generations Focused on Decorating
Most homeowners who renovated in 2019 decorated their homes after the renovation was completed. But younger generations were more focused on decorating compared with older generations. Eighty-two percent of millennials decorated after renovating, whereas only 64% of baby boomers and 49% of seniors did.
Most homeowners who renovated in 2019 decorated their homes after the renovation was completed. But younger generations were more focused on decorating compared with older generations. Eighty-two percent of millennials decorated after renovating, whereas only 64% of baby boomers and 49% of seniors did.
All Generations Researched Products Online in 2019
Online product searches were popular among people of all ages, as this graph shows.
Online product searches were popular among people of all ages, as this graph shows.
Younger Generations Commonly Renovated to Customize a Recently Purchased Home
Motivations for undertaking a renovation in the first place varied across the generations in 2019. Baby boomers were more likely to renovate because they had wanted to all along (58%) than because they had recently purchased a home and wanted to customize it (20%). The same pattern held true for Gen Xers, 60% of whom had wanted to do the renovation all along and 24% of whom did it to customize a recently purchased home.
By contrast, millennials’ renovation projects were commonly motivated by a recent home purchase (43%).
Motivations for undertaking a renovation in the first place varied across the generations in 2019. Baby boomers were more likely to renovate because they had wanted to all along (58%) than because they had recently purchased a home and wanted to customize it (20%). The same pattern held true for Gen Xers, 60% of whom had wanted to do the renovation all along and 24% of whom did it to customize a recently purchased home.
By contrast, millennials’ renovation projects were commonly motivated by a recent home purchase (43%).
