Generational Trends in the Home Improvement Industry 

In the home improvement industry, knowing who you’re working with is essential. When it comes to spending habits and budget priorities, a 30-year-old homeowner typically has significantly different preferences than a 60-year-old homeowner. Recent data and studies from sources such as Houzz and Modern Home Builders have revealed some fascinating statistics about the home improvement behaviors of various generations. By examining the common thought processes and choices observed across these generations, you can enhance your marketing strategies and establish stronger connections with customers of diverse age groups. 

Let’s Dive Deeper: How do home improvement behaviors and trends really differ by generation? 

Gen X – Highest Home Renovation Spenders 

Gen X: born between 1965 – 1980 (59 – 44 years old) 

Many Gen X consumers are in a peak earning phase in their lives, which provides them with increased disposable income to invest in their homes compared to earlier times. According to the 2024 Houzz & Home Study, Gen X spends the most on home renovation projects, with a median home renovation project spend of $25,000 in 2023. This study also reveals that Gen X outspends all other generations on kitchen remodels. When targeting this group, always seize the opportunity to discuss your remodeling services if your business provides them, as they are likely to be interested. 

Gen X has also been known to be the most brand loyal generation, sticking with what has worked for them in the past. Prioritize cultivating strong relationships with this group, as consistent follow-ups and excellent communication skills can go a long way. Continuing to market your business to current customers can improve customer retention. Unlike younger generations, Gen X possesses tech-savvy skills without overly relying on technology, making them more receptive to traditional marketing methods such as direct mail and billboards. Try combining both digital and traditional marketing methods, as many Gen X consumers also enjoy spending time on social media.  

The most important thing to Gen X is authenticity and transparency. As stated in a Forbes article, Gen X consumers are known to be a bit skeptical. Gen X isn’t easily swayed by flashy marketing; they want to know the facts, especially regarding a big financial decision. An important part of your sales process is delivering your financing options transparently. Luckily, partnering with a reliable financing lender that offers adequate training and hands-on support makes this easy.  

Millennials – The ‘DIY’ Generation 

Millennials: born between 1981 – 1996 (43 – 28 years old) 

According to a statistic from The Farnsworth Group, “about 73% of millennials are DIYers.” As DIY projects can be a fun trend for some, there are definitely unbeatable benefits of having a project completed professionally. Consider conversing with your customers about the advantages of hiring a professional. You can highlight that working with an expert may reduce the risk of errors caused by inexperience, which could ultimately result in higher costs than if they had initially sought professional assistance. Posting images of past projects and sharing customer testimonials online can provide a subtler, more indirect way of showing your audience the advantages of hiring a professional. 

Prioritize your home improvement business’s presence on popular social media apps millennials use, such as Facebook and Pinterest. In conjunction with your digital efforts, ensure your home improvement business’s website is user-friendly and straightforward. An article from USC on successful marketing to millennials states, “Mobile is the best way to reach millennials – they have the highest rates of ownership of smartphones of all generations.” It’s important to remember that this generation was brought up in an evolving digital age, and most expect an easy-to-use, mobile-friendly website. 

Millennials are undoubtedly one of the key generations for the home improvement industry to target. Millennials are the largest group of homebuyers, with 3 out of 4 millennials (74%) having a mortgage – the highest rate of any generation. Many millennials carry significant financial responsibilities, including mortgages, car payments, healthcare costs, childcare expenses, student debt, etc. Having financing options readily accessible can demonstrate to this generation that they have the flexibility to pay for their home improvement projects in monthly payments instead of a lump sum upfront, which may suit their budgets more effectively. 

Generation Z (and Young Millennials) – The Influence of Social Media 

Generation Z: born between 1997 – 2012 (27 – 12 years old) 

Although only 0.2% of Gen Z homeowners renovated their homes in 2023, this percentage is bound to increase as more of Gen Z will become homeowners. Generation Z has become fully immersed and influenced by social media apps such as TikTok and Instagram, absorbing content from their favorite creators and brands daily. To effectively reach Gen Z with your home improvement business, it’s essential to prioritize your presence and engagement on these apps. Visual, short-form content caters to the content preferences of this younger generation. Consider posting a quick time-lapse of a remodeling project from start to finish or a humorous meme that new homeowners may relate to.  

Gen Z and younger millennials also value the importance of genuine reviews the most out of any generation. A Power Reviews study on what Gen Z wants to see from reviews claims, “Star ratings are not enough.” Written, authentic reviews from your customers are important to this group, as they can easily identify fraudulent and insincere feedback.

Lastly, a monthly payment option may also align more effectively with the budgets of Gen Z homeowners. The younger generation may opt for a lower monthly payment option in this stage of their life, where they may not have as much disposable income or savings built up as older generations. It’s helpful to let young homeowners know they have the option to pay for their home improvement project in monthly payments, as unplanned expenses can happen to anyone at any time. 

There is no one right way to market to each customer you will encounter, as homeowners of various generations will have differing thought patterns and ways they consume information about your home improvement business. Taking some time to learn about these generational differences and assessing if your business’s marketing efforts and strategy can be adjusted can be well worth it. One thing is true for all generations – home improvement financing options can help homeowners in any generation. Having options available and offering them in today’s world is expected and widely appreciated by many.   

Are you looking to start offering financing options in your home improvement business or make the switch to our network of successful contractors? Connect with our team today.

– Madison Schoppe (Marketing Coordinator)

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