May 10, 2017 (STLRealEstate.News) Generally today, millennials are choosing to settle down and become first-time homebuyers at a much older age than previous generations. Because of this leaning, when millennials do finally decide to call an American suburb their home, they’re investing much more in renovations from their saved capital. Since their first-time home shopping carries much more weight with it than when Baby Boomers checked out starter homes at ages 22 to 24, millennials are packing a serious monetary punch when it comes to creating the first home of their dreams.
This big pending on renovations is a positive sign of confidence in the housing market, stated the Houzz & Home Survey report, released this week. The survey stated that 25 to 24 year olds spent an average of $26,200 on home renovations last year. That’s a 7 percent increase than what they spent on upgrades in 2015. First-time homebuyers spent $33,800, representing 22 percent more. Looking at the entire age bracket, spending was consistent year over year, according to the release report on residential remodeling, building, and decorating activity.
“It’s a pretty strong reflection of the housing market condition,” said Nino Satchinava, principal economist at Houzz. “The home renovation market has mostly recovered, and is in line with the prerecession peak.”
Looking at the entire home-buying population of America, those 55 and older are still outspending millennials at a rate of nearly three times as much. Overall, homeowners who pursued renovations and upgrades last year spent, on average, $60,400, which was just a slight increase from the average of $59,800 in 2015. When looking further at what kinds of renovations were performed in the last year, projects like kitchen, bathrooms, and exterior features led the way, which, according to Sitchinava, indicate that times are very good. This coming year is set to take the spending even farther.