What Baby Boomers and Millennials Spent on Remodels in 2018
Baby boomers spent the most and millennials decorated most often, according to the 2019 U.S. Houzz & Home report
When it comes to renovating their homes, baby boomers spend more and are more active than any other generation in the U.S. They account for more than half of homeowners who renovated last year, according to the 2019 U.S. Houzz & Home report.
Gen Xers — people ages 40 to 54 — weren’t far behind. They account for nearly-one third of homeowners who remodeled last year, and they spent about the same amount on their remodels as baby boomers did.
Gen Xers — people ages 40 to 54 — weren’t far behind. They account for nearly-one third of homeowners who remodeled last year, and they spent about the same amount on their remodels as baby boomers did.
In 2018 Most Home Renovators Were Baby Boomers or Gen Xers
The Houzz & Home survey sheds light on the demographics of home renovation in the U.S., and this pie chart sums up the breakdown by generation. More than half of homeowners who renovated last year were baby boomers (ages 55 to 74), 31 percent were Gen Xers (ages 40 to 54) and 14 percent were millennials (ages 25 to 39).
Seniors (age 75 or older) and Gen Zers (ages 18 to 24) make up only a small share of the homeowners who renovated last year.
The Houzz & Home survey sheds light on the demographics of home renovation in the U.S., and this pie chart sums up the breakdown by generation. More than half of homeowners who renovated last year were baby boomers (ages 55 to 74), 31 percent were Gen Xers (ages 40 to 54) and 14 percent were millennials (ages 25 to 39).
Seniors (age 75 or older) and Gen Zers (ages 18 to 24) make up only a small share of the homeowners who renovated last year.
Baby Boomers Spend the Most on Home Renovations
The green bars in this chart show the median home renovation spending amount in 2018 for each generation of homeowners who renovated. “Median” refers to the midpoint spending amount on home renovation projects in 2018, with half of homeowners spending more than this amount and half spending less. Economists prefer the median to the average, or mean, because that number can be skewed upward in a misleading manner by one-off projects that cost a lot more than others. For millennial homeowners who renovated in 2018, the median spending amount in the U.S. was $10,000. For Gen Xers, baby boomers and seniors it was $15,000.
The gray bars in the chart show the spending amount for the top 10 percent of homeowners in each generation. Among baby boomers across the nation, those in this top-spending group started their spending at $90,000 (and went up from there). Millennials in this elite category started their spending at $60,000.
The green bars in this chart show the median home renovation spending amount in 2018 for each generation of homeowners who renovated. “Median” refers to the midpoint spending amount on home renovation projects in 2018, with half of homeowners spending more than this amount and half spending less. Economists prefer the median to the average, or mean, because that number can be skewed upward in a misleading manner by one-off projects that cost a lot more than others. For millennial homeowners who renovated in 2018, the median spending amount in the U.S. was $10,000. For Gen Xers, baby boomers and seniors it was $15,000.
The gray bars in the chart show the spending amount for the top 10 percent of homeowners in each generation. Among baby boomers across the nation, those in this top-spending group started their spending at $90,000 (and went up from there). Millennials in this elite category started their spending at $60,000.
Younger Homeowners Are Likelier to Use Credit Cards
While cash was the primary financing method for homeowners of all ages who renovated in 2018, millennials are the likeliest generation to use credit cards. Forty-four percent of millennials used credit cards to pay for their renovations in 2018.
The context here is that 87 percent of millennials used cash from savings. So credit cards weren’t the sole financing method for this generation — or, for that matter, for any other generation.
“Our study on the role of credit cards last year found that only up to 25 percent of the renovation spend goes on a credit card for a typical, or median, renovating homeowner who uses a credit card,” says Nino Sitchinava, Houzz’s principal economist.
While cash was the primary financing method for homeowners of all ages who renovated in 2018, millennials are the likeliest generation to use credit cards. Forty-four percent of millennials used credit cards to pay for their renovations in 2018.
The context here is that 87 percent of millennials used cash from savings. So credit cards weren’t the sole financing method for this generation — or, for that matter, for any other generation.
“Our study on the role of credit cards last year found that only up to 25 percent of the renovation spend goes on a credit card for a typical, or median, renovating homeowner who uses a credit card,” says Nino Sitchinava, Houzz’s principal economist.
Younger Generations Favor Living Space Renovations Over Master Bath Renovations
Kitchens and nonmaster bathrooms are the top two rooms to renovate for all ages, but the popularity of upgrades to other rooms varies by generation. For example, millennials and Gen Xers favor living or family room renovations over master bathroom projects, while the reverse is true for baby boomers and seniors.
Kitchens and nonmaster bathrooms are the top two rooms to renovate for all ages, but the popularity of upgrades to other rooms varies by generation. For example, millennials and Gen Xers favor living or family room renovations over master bathroom projects, while the reverse is true for baby boomers and seniors.
Millennials Are Split on Smart Tech
It turns out that integrating smart tech into home renovation projects is a polarizing issue. Millennials (31 percent) are likelier than baby boomers (25 percent) to rank it as a high priority. Yet nearly as many millennials (26 percent) consider integrating smart tech a low priority. Among baby boomers and seniors, 37 percent feel the same way.
All the generations are split in terms of their feelings on this issue. Gen X is the most evenly divided generation, with 29 percent of Gen Xers considering smart tech a high priority and 30 percent considering it a low one.
It turns out that integrating smart tech into home renovation projects is a polarizing issue. Millennials (31 percent) are likelier than baby boomers (25 percent) to rank it as a high priority. Yet nearly as many millennials (26 percent) consider integrating smart tech a low priority. Among baby boomers and seniors, 37 percent feel the same way.
All the generations are split in terms of their feelings on this issue. Gen X is the most evenly divided generation, with 29 percent of Gen Xers considering smart tech a high priority and 30 percent considering it a low one.
All Generations Hire Professional Help
Most homeowners who renovated in 2018 hired a professional. While millennials are less likely than baby boomers to hire professionals, the difference is not great: 82 percent of millennials hired pros, compared with 89 percent of baby boomers who did.
In terms of hiring construction managers such as general contractors, the generational difference is even smaller: 34 percent of millennials hired these pros, while 36 percent of baby boomers did.
Millennials Are Likelier Than Baby Boomers to Decorate After Renovating
Four in five millennials (83 percent) decorated their homes after renovating, compared with only two in three baby boomers (65 percent). Millennials are likelier to purchase interior decor items like large furniture, such as sofas, as well as storage and organization products. “A large share of millennials have recently moved into their first home,” Sitchinava says. “I suspect that many hold off on buying major home decor until after the home renovations are completed.”
Read more results from the study
More on Houzz
This Is How Much People Spent on Home Renovations in 2018
Here’s Why Kitchen and Bath Renovations Are Costing More
Read more stories for pros
Shop for products and materials
Most homeowners who renovated in 2018 hired a professional. While millennials are less likely than baby boomers to hire professionals, the difference is not great: 82 percent of millennials hired pros, compared with 89 percent of baby boomers who did.
In terms of hiring construction managers such as general contractors, the generational difference is even smaller: 34 percent of millennials hired these pros, while 36 percent of baby boomers did.
Millennials Are Likelier Than Baby Boomers to Decorate After Renovating
Four in five millennials (83 percent) decorated their homes after renovating, compared with only two in three baby boomers (65 percent). Millennials are likelier to purchase interior decor items like large furniture, such as sofas, as well as storage and organization products. “A large share of millennials have recently moved into their first home,” Sitchinava says. “I suspect that many hold off on buying major home decor until after the home renovations are completed.”
Read more results from the study
More on Houzz
This Is How Much People Spent on Home Renovations in 2018
Here’s Why Kitchen and Bath Renovations Are Costing More
Read more stories for pros
Shop for products and materials
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Here’s a breakdown of spending among generations.