A new Valassis survey of over 1,200 respondents found that homeowners across generations are planning to make some type of home improvement in the next year, with 79 percent of millennials (67 percent of Gen Xers, 49 percent of Boomers) planning to do so.
Consumer spending on remodeling and home improvements is expected to reach $324 billion in 2018.
Plus a new Valassis survey of over 1,200 respondents found that homeowners across generations are planning to make some type of home improvement in the next year, with 79 percent of millennials (67 percent of Gen Xers, 49 percent of Boomers) planning to do so.
The high percentage of millennial home improvers is not a surprise, especially given that they are the largest segment of new homeowners today, with Zillow reporting that this generation makes up 42 percent of home buyers. However, in terms of the annual spending on home improvement projects, Scarborough 2017 data shows that Boomers ($2,799) and Gen Xers ($2,652) currently outspend their millennial counterparts ($2,412). These data points all highlight the importance for brands to engage multiple audiences through strategic, relevant messages.
“Taking a consumer-centric approach helps marketers understand what makes each shopper tick,” said Curtis Tingle, Chief Marketing Officer, Valassis. “First, use real-time signals to identify which consumers are ‘in-market’ and ready to buy. Next, overlay insights that identify the type of media that is influencing them to make a purchase, and why. Finally, craft relevant messages based on your findings to increase traffic, drive sales and win the shopper as they look to spend more on their homes.”
Takeaways from Valassis’ research include:
Home improvement consumers look before they leap:
Among homeowners who did or are planning home improvement projects --
71 percent of millennials took more than three months to research compared to 57 percent of all homeowners.
36 percent of millennials took six or more months vs. 28 percent of all homeowners.
The online marketplace, especially via Amazon, is changing how consumers find home products and services:
The top three home improvement products or services shoppers are willing to buy from Amazon are:
Large appliances (45 percent);
Lawn, garden and yard maintenance (37 percent); and
Housecleaning services (36 percent).
Millennials have an especially high affinity for shopping on Amazon for these products and services, with percentages increasing significantly (65 percent, 64 percent and 61 percent, respectively).
Home improvement projects run the gamut:
The top four projects homeowners currently have in mind include:
Painting (26 percent);
Replacing or installing new floors/carpets (24 percent);
65 percent of millennials go to the retailer featured in a manufacturer’s advertisement to make a purchase compared to 53 percent of consumers.
75 percent of millennials (vs. 67 percent of all consumers) are motivated to make a purchase due to a special deal or promotion.
Chris Herbert, managing director of the Joint Center for Housing Studies, said: "Strong demand for rental housing has opened up that segment to a new wave of capital investment, and the shortage of affordable housing in much of the country makes the stock of older homes an attractive option for buyers willing to in invest in upgrades."