CURRENT ECONOMIC OUTLOOK
In general, American homeowners are optimistic about the next twelve months. 60% of homeowners consider the state of the economy before making renovation plans and 61% are confident the economy is improving. Additionally, 55% of our respondents believe that home values will also increase over the next year. While President Trump can be a controversial topic, only 28% report taking the presidential administration into consideration before making home improvement plans.
FUTURE SPENDING ON HOME RENOVATION
Homeowners are looking to take heart from today’s stronger real estate market and are making investments in their homes. 55% of homeowners plan to do at least one renovation in the next twelve months, compared to 38% who have made improvements before. 41% of respondents are starting a home improvement project to improve their quality of life, while 17% are looking to increase the value of their home but have no current plans to sell, and 16% want one.” new image”.
Homeowners are also tackling bigger and more expensive projects this year: 15% plan to remodel their kitchen this year, 13% plan to update a bathroom, and 9% are looking to renovate their bedroom. 42% plan to spend between $3,000 and $10,000 on their next renovation, up 6% from last year. Some good news for contractors: 61% plan to hire a professional for their next project, compared to 59% who hired a professional for their previous project. 49% of respondents plan to pay with cash or savings, 17% will put it on a credit card, 14% will use financing, 10% plan to use a home equity loan, and 8% are counting on their tax return to finance your project.
MILLENNIALS VS. BABY BOOMERS: WHO IS SPENDING ON HOME IMPROVEMENTS?
Baby boomers and millennials have at least one thing in common when it comes to home projects: 61% of baby boomers and millennials plan to make at least one home improvement in the next twelve months. However, that may be where the similarities end. The majority of millennials (35%) plan to spend between $1,000 and $2,999, while 31% of baby boomers will spend between $5,000 and $9,999. Baby boomers will mostly pay cash (67%), finance (13%) or take out a home equity loan (7%). Millennials will also pay with cash (42%), but 19% plan to use one or more credit cards.
Millennials are focused on renovating their kitchen (14%), bathroom (10%), and living room (9%), while 23% of baby boomers will update their bathroom, kitchen (19%), or replace windows (9%). %). ). Most of both age groups will hire a professional to do the job, but 39% of millennials plan to do the renovation themselves, compared to 27% of baby boomers. Millennial respondents get a sense of satisfaction from doing the work themselves (40%), while baby boomers are more focused on keeping the project profitable (59%). Baby boomer do-it-yourselfers are also very specific about where they buy their materials, with 85% buying from building supply stores like Home Depot, Lowe’s or Menards, hardware stores like Ace Hardware or True Value (8 %) or Walmart (8%). Millennials also shop at supply stores (64%), Walmart (14%) and hardware stores (7%), but they frequent warehouse clubs like Costco or Sam’s Club (7%) and high-end specialty stores like Kohler (4%) ). ) also.
WOMEN IN CHARGE OF HOME PROJECTS
While home improvement has been stereotypically thought of as a male-dominated industry, women are picking up power tools and squeezing margins. Of our respondents, 55% of women plan to complete a home improvement project in the next twelve months, compared to 57% of men. The majority of men (33%) intend to spend between $5,000 and $9,999, while 29% of women are looking to spend between $1,000 and $2,999. Cash is king for the women who finance her project; 54% of women use cash, while men will use cash (40%) or financing (21%). The genres are also focused on improving different areas of the house; the men will remodel the bathroom, while the women plan to update the kitchen.
The majority of both sexes – 63% of women and 58% of men – intend to hire a professional for their next project. 56% of women feel they do not have the necessary skills or equipment for their planned project, while men value the experience that comes with hiring a professional (47%). Another difference between the genders is how they find professionals to hire. Women prefer to ask a friend for a referral (40%), search a review website like Yelp.com (18%), or ask a contractor for a referral (17%). Men also ask their friends for recommendations (30%), but prefer to use a search engine like Google.com (24%) or search Yellowpages.com (21%).
Motivated women who plan to DIY prefer it because it gives them a sense of personal satisfaction (41%), while DIY men like that it is more cost-effective (53%). Most men (74%) and women (75%) plan to buy materials at a building supply store like Menards, Home Depot, or Lowe’s, but that’s where the consistency ends. 10% of men intend to shop at Sears or IKEA (6%), while women will head to warehouse clubs like Costco (8%) or Walmart (8%).
NEXT YEAR
The inventory of today’s real estate market is very competitive, so it is logical that many homeowners choose to invest in remodeling their current home, rather than enter into a bidding war. Plus, with the more stable economy and real estate market, homeowners now have more income and capital, so they are renovating to create the homes of their dreams. Our study found that most homeowners are focusing on discretionary projects like kitchens and baths, which may have been put on hold after the housing crisis. Judging by our report, it looks like 2018 will be a profitable year for homeowners as well as contractors and material suppliers.
