Millennials make up the largest generation group of homebuyers. For many, homeownership is completely new territory. Two-thirds of millennial homebuyers are also first-time homebuyers, according to research from the National Association of Realtors.
Known for doing things their own way, millennials have changed the way homeownership looks. More millennial homebuyers are single than any other generation, they're making their first purchase when they're older; and they're more likely to have student debt to balance along with their new mortgage.
As more millennials become homeowners, more are investing in home renovations as well. For homeowners ages 25 to 34, renovation spend increased 7 percent in 2016, according to a study conducted by Houzz.
"Millennial renovation spend increased 7 percent in 2016."
Knowing what these consumers want and what their biggest concerns are can only aid remodelers in bringing on new customers.
Student loans are often cited as the biggest challenge to making a home purchase, with nearly half of millennial buyers reporting they are still paying down student debt. The median balance reported was $25,000.
Now that they're homeowners they have two major debts to pay down: the student loans and the mortgage. Considering these facts, it's no wonder budget is one of the biggest concerns for young homeowners looking to renovate their houses.
Homeowners ages 35 and younger are two times more likely to make decisions based on cost than someone older than 35, The Washington Post reported. Addressing these concerns early on can help convert more prospects into customers.
Offer a financing plan that can help keep the upfront cost down. Also, work through the math with them; show them what the monthly payments will be. Finally, show them that you can seek out budget-friendly solutions for them.
Young homeowners aren't just looking at the upfront cost to upgrade. These remodelers are thinking about the long-term, choosing materials, colors and trends they anticipate enjoying for years to come.
There's a reason behind this practicality: Choosing an ageless trend means they won't have to spend as much money later on.
"Millennials are a lot more focused on making sure that the style, color palette and materials used in the major elements of the kitchen stay as relevant as long as possible because they're not planning another remodel any time soon," Nino Sitchinava, Houzz's principal economist, told the Washington Post.
Many are betting on the sustained relevance of gray walls, white cabinetry and kitchen islands, a Houzz survey found. Millennials also seek out materials that are known to last. As such, granite and quartz countertops are popular among this age group, as are porcelain, ceramic and wood floors.
Beyond the kitchen, which is the most popular room to remodel, guest bathrooms, living rooms and master baths were leading renovation focuses. However, for first-time homebuyers specifically, master bedroom remodels were of utmost importance; they were twice as common among this demographic than among repeat buyers.
As a remodeler, it's important to anticipate buyer concerns as well as buyer trends. To learn about how you can offer financing to help address budgetary worries, reach out to Aqua Finance.