CNBC reports that millennials are among the top groups of people increasing the money spent on home remodeling projects. While the oldest homeowners are still the largest spending group, millenials are quickly coming in second with a seven percent increase in average money spent to remodel a home for an average of more than $26,000 a year. Surprisingly, a first-time buyer often spends nearly $34,000 renovating a residential property.
Where is the money coming from for new construction and rehab projects?
Typically property owners use the equity in the home and other items like bonds, stocks, and vehicles to access the necessary money to complete home projects. millennials are not going this route with most of them using credit cards. Houzz conducted a survey of more than 100,000 participants finding that spending since 2004 has gradually increased year after year. CNBC says that this is a signal to the rest of the country that the housing market has rebounded nicely since the recession, and they claim that the current spending rates are comparable to those of pre-recession numbers.
How funds are spent to fix up the home?
One of the best signs that the housing market has fully rebounded is that people are using the renovation money they get to make a variety of changes. Many property owners are choosing to upgrade kitchens, closets and baths, while others are using the money to increase curb appeal making the home worth more money in the long run. Experts say that these remodeling projects are often chosen only when the market is in good shape.
Businesses are vying for a spot in the survey standings
Surprisingly, many companies are joining residential owners in improving company owned properties. Most of these are large residential complexes, real estate firms, and corporate property owners, but the increase to twelve percent from eight to ten percent this time last year shows growth is happening in every sector of property management. The rise in spending shows that the housing market is thriving in the current economic state of the country.
Older owners spend the most on upgrades
While millennials are quickly expanding the amount they choose to spend on a home, more experienced owners who understand the markets a little better are paying three times as much. On average, mature owners are spending nearly $56,000 a year making a property more manageable and upgrading it with items that they want. High-end renovations with luxury options are a huge part of this trend, but the projects are extremely diverse ranging from installing hot tubs to opting for top quality finishes.
The younger generation is often the one leading the market trends, so it is no wonder that they are the ones surprising the experts. Apparently, the growth since 2004 is steadily showing confidence in the economy and the housing sector. Experts are so sure of the trends that they expect 2017 to be another record-breaking year for the twenty and thirty-somethings.