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Webinar: Megatrends Driving Home Improvement

Must-know motivators of homeowner behavior and spending in 2024 and beyond

Houzz Pro

JANUARY 12, 2024

Big changes in how Americans are living at home and what they’re spending their remodeling dollars are afoot — and not just because the pandemic upended everyone’s way of life. Liza Hausman, vice president of industry marketing at Houzz, has been researching consumer trends for years, attending all kinds of events and informational sessions offered by industry sources, the government and more, and has distilled all of that research into a free webinar. In the info-packed 30-minute video, she details four megatrends that all home improvement pros should know about, so they can target their marketing efforts and pitch more attractive plans to potential clients. Here are the highlights.

Note: Sources for all statistics below vary and can be found in the webinar. All apply to the United States only.

Megatrend # 1: Significant Demographic Shifts

The numbers of multigenerational households, unpartnered adults and people over 65 have risen substantially over the decades in the United States, leading to major changes in the way people live at home and what they want and need from their living spaces. Let’s break it down.

Rise in multigenerational households. The number of people living in multigenerational homes, defined as two or more generations living under one roof, has jumped from 10% in 1971 to 18% in 2019. This can be attributed to factors including the high cost of housing and childcare, as well as the increase in the aging population.  

Rise in unpartnered adults. Among those ages 25 to 54, the number of unpartnered adults, meaning not married or living with a partner, has jumped from 29% in 1990 to 38% in 2019. A major factor is the decline in marriage rates. Fewer people are having children these days as well; some people are choosing to have pets instead.

Rise in aging population. Baby Boomers are driving this trend, and 10,000 people are now turning 65 every day. By 2034, for the first time ever, the number of people age 65 or older will exceed the number of younger people. Among those in the LGBT community who are aging, more than ever before are doing it without family support or children.

Moreover, the U.S. housing stock is far from ready for a bigger aging population, due to lacking structural accommodations and the fact that suburban homes aren’t ideal for seniors who don’t drive. In the Middle Atlantic, for instance, only 5.8% of homes are aging-ready.

Smart Strategy

Focus on what’s in higher demand now and well into the future, such as:

  1. Products and living spaces that are accessible to seniors and children — in some cases in the same household, particularly as relates to bathrooms
  2. Accessory dwelling units (ADUS) to accommodate multigenerational living
  3. Pet-related products and spaces, such as laundry rooms with dog-washing stations as well as dog-friendly landscaping.

Megatrend #2: Pursuit of Experiences 

Spending on out-of-home experiences has increased, while spending on home improvement has declined. In fact, experiences are now the biggest competitor to the design-and-building industry for share of wallet. High interest rates, softening house price appreciation and sluggish home sales all are contributing to the decline in spending on home improvement. 

Americans still cite spending time with family as the most important thing in life, however, and the home is the most obvious place for doing just that.

Smart Strategy

Make the home a key place for:

  1. Playing, having engaging experiences. Interestingly, the number of searches for “basement golf simulator” on Houzz is up by 1,905% year over year as of summer 2023. Searches for “basement family room” are up by 791%.
  2. Socializing — particularly in the kitchen, because homeowners are looking for kitchen amenities that help them host gatherings. Searches for “walk-in kitchen pantry” on Houzz are up by 2,636% year over year as of summer 2023.

Megatrend #3: Seeking Anxiety Antidotes

It will come as no surprise to anyone that stress and anxiety levels are high these days. Rapid changes in technology are creating both sensory overload and isolation, and attempts to multitask exacerbate stress and anxiety. More people are working completely or partially remotely (the share rose by 21% between 2018 and 2023), lowering the boundaries between work and home and causing spillover stress. And then, of course, we’re all still dealing with the effects of the COVID-19 pandemic.

Smart Strategy

Accommodate self-care and calm experiences within the home. You might do this by designing or building things like a:

  • Home gym or bathroom with a sauna
  • Spa-like bathroom
  • Yoga or meditation room

Create soothing outdoor spaces, such as a:

  • Rooftop terrace
  • Patio with loungers
  • Tranquil, low-maintenance garden

Use traditional design elements, such as in Colonial or Spanish Colonial styles. These tend to have a comforting, often nostalgic feel.

Megatrend #4: Lower Spending + Selective Splurging

Spending on home improvement is down overall, and many consumers are “trading down” — meaning choosing smaller or lower-maintenance versions of spaces and products they enjoy — and seeking value. A big reason for this is high interest rates, which make homeowners less likely to want to tap into home equity to pay for big projects.

However, homeowners are still shelling out for a few things that are important to them. And they’re seeking quality in the items they purchase — not just the lowest price. Perhaps not surprisingly, Baby Boomers have the most money among all the generational categories but are the least likely to splurge. 

Smart Strategy

  1. Don’t automatically lower prices, which can lower aspirational quality and trust, especially if your business is in the luxury space. Instead, focus on quality and longevity in designs and products.
  2. Offer ideas as to how potential clients can “live smaller,” and be ready to accommodate special splurge requests, such as artisanal work. 

Megatrend #5: Expecting Tech Savviness

Consumers are savvier than ever about digital solutions, thanks to the pandemic and just a general increase in familiarity with tech products such as smartphones. And they’ve come to expect short response times from product and service providers, as well as being able to get items they want delivered to their door when they want them. That extends to home improvement pros — in fact, many respondents in a recent Houzz survey cited tech savviness among the top things that would have improved their experience with a pro.

Smart Strategy

Adopt digital business technology that will both wow clients and be easy to use. Houzz Pro, for instance, is an all-in-one solution that users rave about. It offers the ability to create 3D floor plans and immersive designs using augmented reality as well as tools to make estimating, invoicing and communicating much easier — and with many intuitive features, it has a low learning curve.

Curious? Try it free today and see for yourself.

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