Millenials Making Moves
Home improvement projects are now synonymous with millennials. Attribute it to growing up watching “Home Improvement” or the compromise millenials are facing with purchasing starter homes. Either way, millenials are “becoming increasingly important” as stated by HomeAdvisor’s Chief Economist, Brad Hunter.
Hunter thinks that the current lack of homes are causing millenials to look to home-improvement over selling and moving. “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 homeownership. Many of the millennials who did buy 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. Luckily, many have built up the equity to afford the cost of some improvements.”Millennials have completed the most home projects in the past 12 months—more than baby boomers, Gen X, or the silent generation, according to the study. However, baby boomers tend to outspend all generations in home improvement projects.
Nowhere to Go
According to the study done by HomeAdvisor, more than half of millennials want to move to a place with 1.) more space or 2.) upgrade to a nicer home. However, as HomeAdvisor’s Chief Economist stated the lack of homes for sale leaves the millennials stuck with the only alternative being home-improvement.
82% of the millennials say they plan to spend as much as they did in the last 12 months on home improvement projects next year.
This millennial trend toward home-improvement could cause a big change when more houses become available. The consistent home-improvement could increase housing costs overall but for the meantime, that is just conjecture. With the plethora of home improvement shows on TV today, millennials have free advice in bolstering their current home while waiting for the market to open up.
Source: The True Cost Report