2018 Home Renovation Report: Homeowner Top Trends, Expenses, and Projects
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 that the economy is improving. Additionally, 55% of our respondents believe that home values will also increase over the next year. While President Trump may be a controversial topic, only 28% report that they take the presidential administration into consideration before making home improvement plans.
FUTURE HOUSING RENOVATION EXPENSES
Homeowners are looking to be encouraged by today’s stronger housing market and are winning on their homes. 55% of homeowners plan to do at least one renovation in the next twelve months, compared to 38% who have made improvements in the past. 41% of those surveyed 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 a ” new look “.
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 the bedroom. 42% plan to spend between $ 3,000 and $ 10,000 on their next renewal, 6% more than 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% have their statement of taxes to finance your project.
MILENALES VS. BABY BOOMERS: WHO IS SPENDING ON HOME IMPROVEMENT?
Baby boomers and millennials have at least one thing in common when it comes to doing projects at home: 61% of both baby boomers and millennials plan to make at least one improvement in the next twelve months. However, that’s where the similarities end. Most 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 pay primarily in cash (67%), financing (13%), or obtaining a home equity loan (7%). Millennials will also pay in 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 renovate themselves, compared to 27% of baby boomers. Millennial respondents get a sense of satisfaction from doing the job themselves (40%), while baby boomers focus more on keeping the project profitable (59%). Baby boomers DIYers are also very specific about where they buy their materials, with 85% buying at construction 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 frequent stores 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 viewed as a male-dominated industry, women are choosing power tools and cutting margins. Of our respondents, 55% of women plan to undertake a home improvement project in the next twelve months, compared to 57% of men. Most men (33%) intend to spend between $ 5,000 and $ 9,999, while 29% of women aim to spend between $ 1,000 and $ 2,999. Cash is king for the women financing your project; 54% of women use cash, while men will use cash (40%) or financing (21%). The genres also focus on improving different areas of the house; the men will remodel the bathroom, while the women plan to renovate the kitchen.
The majority of both genders, 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 hiring a professional brings (47%). Another difference between the genres is how they find professionals to hire. Women prefer to ask a friend for a reference (40%), search a review website like Yelp.com (18%), or ask a contractor for a reference (17%). Men also ask their friends for referrals (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 it to be more profitable (53%). Most men (74%) and women (75%) plan to buy supplies at a construction 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%).
THE FUTURE YEAR
The current inventory of the housing market is very competitive, so it stands to reason that many homeowners are choosing to invest in remodeling their current home, rather than entering a bidding war. Plus, with the economy and housing market more stable, homeowners now have more income and more equity, so they are doing renovations to create their dream homes. Our study found that the majority of homeowners are focusing on discretionary projects like kitchens and bathrooms, which may have been postponed after the housing crisis. Judging from our report, it looks like 2018 will be a profitable year for homeowners, contractors, and material suppliers alike.