Kitchen & Bath Design News

AUG 2018

Kitchen & Bath Design News is the industry's leading business, design and product resource for the kitchen and bath trade.

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GOLDEN, CO — Home improvement continues to flourish, but while baby boomers remain the biggest spenders, the millennial generation has seemingly taken the lead in com- pleting the most home improvement projects. That's among the key findings of a recent online sur- vey conducted among more than 1,000 homeowners by HomeAdvisor, the Golden, CO-based digital marketplace that connects homeowners with service professionals. HomeAdvisor's "True Cost Report," authored by chief economist Brad Hunter, provides insight into homeowner spending trends and the primary factors influencing project decision-making. According to the report, homeowners are choosing remodeling over selling and moving, with more than 80% of surveyed homeowners saying they plan on remaining in their existing homes and half considering a remodel. Aside from an overriding reluctance to move, the doubling of homeowner equity over the past six years has also given people the financial wherewithal, and the confidence, to make discretionary upgrades in their homes, HomeAdvisor found. Nearly two-thirds of surveyed homeowners plan to spend as much money, or more, on home improvements in the coming 12 months compared to the past 12 months, the report revealed. "More homeowners are choosing to remain in and improve their existing homes rather than sell and move into new homes," Hunter said. "And, depending on the age and condition of their home, as well as their own age and eco- nomic situation, they're making modifications both out of ne- cessity and a desire for aesthetic and lifestyle improvements." According to Hunter, homeowners in their 60s are adding touches of luxury and convenience, while those in their 30s are using their savings and equity to make their homes more efficient, while improving the aesthetics and infrastructure. The HomeAdvisor report also reveals 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 numb er of projects (see relat- ed graph, below). Five in six surveyed millennials (born 1980- 1994) plan to spend as much or more on home improvements in the coming 12 months as they did last year, with more than half expecting to spend more, HomeAdvisor said. "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 home- ownership," Hunter commented. "Many 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." According to Hunter, the popularity of repair-and-main- tenance projects, peppered among larger-scale upgrades such as bathroom remodels, exterior painting, landscape installations and kitchen remodels, "is indicative of the millennial influence and the trend toward continued home improvement growth." Looking to the future, Hunter said, "millennials will see a significant increase in their share of home improvement spending." But while millennials have a higher propensity to tackle home improvements, they don't spend as much as baby boomers to complete them, according to HomeAdvisor. In fact, baby boomers – who've generally accumulated greater equity and have higher net worth – have outspent millen- nials by 32% over the last 12 months on home projects. Furthermore, baby boomers plan to spend 77% more on kitchen remodeling projects in the next 12 months than millennials, the HomeAdvisor report found. Luxury and dis- cretionary home upgrades account for a larger share of total home improvement expenditure than they did 10 years ago, Hunter pointed out. Among the additional findings from the HomeAdvisor report are the following: • Bathroom remodels will continue to be more popular than kitchen remodels. In fact, almost one-quarter of homeowners say they're planning for a bathroom remodel in the next 12 months, compared to 15% of homeowners planning for a kitchen remodel. "Adding or upgrading creative lighting, flooring, cabinets, shower doors/enclosures and tile are popular tasks," Hunter said. "Many homeowners also include luxury touches Survey Shows Millennials' Growing Impact Source: HomeAdvisor 2018 'True Cost Report' THE MAJOR IMPACT OF MILLENNIALS ON RESIDENTIAL REMODELING Number of Home Projects Completed in Past Year Compared to Other Generations 72% 42% 18% More projects than the 'Silent Generation' (Born 1925-1945) More projects than Baby Boomers (Born 1946-1964) More Projects than Generation Xers (Born 1965-1979 14 Kitchen & Bath Design News • August 2018 CONSUMER BUYING TRENDS DEMOGRAPHICS & BUYING PATTERNS FOR THE HOME PUBLISHING SOLA GROUP, INC. 1880 OAK AVE., SUITE 350 EVANSTON, IL 60201 (847) 440-3000 Paul DeGrandis Publisher, ext. 100 Eliot Sefrin Publisher Emeritus, ext. 113 SALES WEST/MIDWEST Paul DeGrandis Ext. 100 Direct (847) 920-9510 EAST/SOUTHEAST Joanne Naylor Ext. 114 Direct (201) 891-9170 EAST/SOUTHEAST Jon Catano Direct (786) 447-1260 MIDWEST Jessica Fidrocki Ext. 117 Direct (847) 386-2177 PRODUCT & LITERATURE SHOWCASE/CLASSIFIED ADS Mike Serino Ext. 102 Direct (630) 699-2004 EDITORIAL Janice Anne Costa Editor, ext. 116 Anita Shaw Managing Editor, ext. 112 Autumn McGarr Associate Editor, ext. 104 SUBSCRIPTIONS Kitchen & Bath Design News Circulation Dept. P.O. Box 3007 Northbrook, IL 60065-3007 (866) 932-5904 ® Continued

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