There’s a New “Kid” in Town: Why Millennials Matter in Home Improvement
As time passes by, demographics change, and the world evolves, businesses must adapt to stay relevant and successful. One demographic that is quickly becoming a key player in the home buying and home improvement space is millennials. Some may not realize it, but a significant number of millennials are now in their 40s, and they are only getting older with each passing year. This means that they are increasingly becoming a vital demographic for businesses to attract and retain.
To capture the attention and business of this generation, it is important to review marketing tactics and understand how they spend their money. According to the National Association of Realtors, millennials represent 43% of homebuyers in 2022, the highest share of any generation. This trend is expected to continue, and many researchers are predicting an upcoming millennial baby boom. Buying homes and family formation are key drivers of home improvement activity.
When it comes to spending on home improvement projects, millennials lead the pack, with an average spend of $9,958 and completing 3.5 improvement projects. Gen X, on the other hand, saw lower spending and lower total improvement project volume, compared to millennials, with $7,381 and 3, respectively. Gen X is too young to begin the work of preparing the home for retirement and too old to be first-time homebuyers or first-time parents.
Baby Boomers took on a lower number of projects this year, but had a decently high spend on those projects, suggesting they are taking on higher price tag projects. This year, Baby Boomers spent $9,092 across 2.6 projects. The silent generation spent the second-highest, but took on the smallest number of projects this year, $9,532 and 1.8, respectively. This suggests that while they only took on a few improvement projects, these projects were likely higher-value improvement projects, making the home more livable as they age in place.
Lastly, the youngest generation, Gen Z, spent the least of any generation, yet took on as many projects as millennials, spending $6,638 and completing 3.5 projects. This suggests that Gen Z is a cost-conscious generation that has an eye toward home improvement affordability more than any other age group.
To fully understand the buying power of millennials, Heidi Manning, an expert in the home improvement industry, hosted a talk on April 13th. She discussed the best practices to not only win their attention but win their business as well. As demographics shift and new generations emerge, businesses must evolve their marketing tactics to stay relevant and capture the attention of the rising demographics. By understanding the buying habits and trends of millennials, businesses can position themselves to attract and retain this important demographic.