2018 True Cost Report Key Findings
The results of HomeAdvisor’s 2018 True Cost Survey are in, and they’re anticipating another healthy year for home improvement projects and spending. And, interestingly, the millennial generation is becoming increasingly important in this sector of the economy. Not only did millennial homeowners complete the most home projects per household in the last 12 months, but five in every six homeowners plan to spend as much or more on home improvements in the coming 12 months.
What’s more, millennial homeowners are now twice as likely as baby boomers to tackle kitchen and bathroom remodels. The reason is simple: 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.
Of course, this phenomenon isn’t restricted to millennial homeowners. In fact, most homeowners report plans to remain in their existing homes, with half considering a remodel. And the majority of homeowners say they’re planning to spend as much or more on home improvements in the coming year—primarily on cosmetic enhancements such as painting, landscaping and remodeling.
Here’s a breakdown of the generations covered in the report
Here are some of the key finding of the report
- Homeowners have spent an average of $6,649 on home improvements per household in the last 12 months.
- Millennials are more likely than any other generation to remodel any part of their homes—and they’re twice as likely as baby boomers to complete bathroom and kitchen remodeling projects.
- Millennials have completed the most home projects in the past 12 months—72 percent, 42 percent, and 18 percent more than the silent generation, baby boomers and Gen Xers, respectively.
- Baby boomers have spent the most money on home projects in the past 12 months—32 percent, 14 percent, and 10 percent more than millennials, Gen Xers and the silent generation, respectively.
- Homeowners are choosing remodeling over selling and moving. In fact, more than 80 percent plan on staying in their existing homes, and half of all respondents are considering a remodel.
- Homeowners cite improved aesthetics as their primary motivation for remodeling, followed by improved comfort and added value.
- More than half of homeowners say they’d like to purchase and personalize a fixer-upper home.
- Nearly two-thirds of American homeowners plan to spend as much money or more on home improvements in the coming 12 months over the past 12 months.
- Five in six millennials plan to spend as much or more on home improvements in the coming 12 months, with more than half of millennials expecting to spend more than they spent last year.
- Interior painting, landscape installation, bathroom remodeling, flooring installation, and exterior staining and painting projects top the list of projects homeowners are considering completing in the next 12 months.
With nearly half of all home improvement projects over $5,000 being financed in some way, if you’re a home improvement contractor who wants the ability to offer your customers financing, contact EnerBank today to get started. Our lending experts will guide you through the process of setting up a financing program that meets that specific needs of your business.