CURRENT ECONOMIC OUTLOOK
In general, US homeowners are optimistic about the next twelve months. 60% of homeowners consider the state of the economy before making renovation plans and 61% are confident the economy is improving. Additionally, 55% of our respondents believe that home values ​​will also increase over the next year. While President Trump can be a controversial topic, only 28% report considering the presidential administration before making home improvement plans.

FUTURE SPENDING ON HOME RENOVATION
Homeowners are looking to take heart from today’s stronger real estate market and are making investments in their homes. 55% of homeowners plan to do at least one renovation in the next twelve months, versus 38% who have previously upgraded. 41% of respondents are starting a home improvement project to improve their quality of life, while 17% are looking to increase the value of their home but have no current plans to sell, and 16% want a ” new image”.

Homeowners are also tackling larger, more expensive projects this year: 15% plan to remodel their kitchen this year, 13% plan to update a bathroom, and 9% are looking to renovate their bedroom. 42% plan to spend between $3,000 and $10,000 on their next renovation, up 6% from last year. Some good news for contractors: 61% plan to hire a professional for their next project, compared to 59% who hired a professional for their previous project. 49% of respondents plan to pay with cash or savings, 17% will put it on a credit card, 14% will use financing, 10% plan to use a home equity loan, and 8% have their tax return to finance your project.

MILLENNIALS VS. BABY BOOMERS: WHO IS SPENDING ON HOME IMPROVEMENTS?
Baby boomers and millennials have at least one thing in common when it comes to home projects: 61% of baby boomers and millennials plan to make at least one improvement in the next twelve months. However, that may be where the similarities end. The majority of millennials (35%) plan to spend between $1,000 and $2,999, while 31% of baby boomers will spend between $5,000 and $9,999. Baby boomers will primarily pay cash (67%), finance (13%), or take out a home equity loan (7%). Millennials will also pay with cash (42%), but 19% plan to use one or more credit cards.

Millennials are focused on renovating their kitchen (14%), bathroom (10%) and living room (9%), while 23% of baby boomers will update their bathroom, kitchen (19%) or replace windows (9 %). ). Most of both age groups will hire a professional to do the job, but 39% of millennials plan to do the renovation themselves, compared to 27% of baby boomers. Millennial respondents derive a sense of satisfaction from doing the work themselves (40%), while baby boomers are more focused on keeping the project profitable (59%). Baby boomer DIYers are also very specific about where they buy their materials, with 85% buying from building supply stores like Home Depot, Lowe’s or Menards, hardware stores like Ace Hardware or True Value (8 %) or Walmart (8%). Millennials also shop at grocery stores (64%), Walmart (14%) and hardware stores (7%), but frequent warehouse clubs like Costco or Sam’s Club (7%) and luxury specialty stores like Kohler (4%) . ) as well as.

WOMEN IN CHARGE OF HOME PROJECTS
While home improvement has been stereotypically thought of as a male-dominated industry, women are picking up power tools and driving down margins. Of our respondents, 55% of women plan to do a home improvement project in the next twelve months, compared to 57% of men. The majority of men (33%) intend to spend between $5,000 and $9,999, while 29% of women intend to spend between $1,000 and $2,999. Cash is king for the women who finance their project; 54% of women use cash, while men will use cash (40%) or financing (21%). The genres are also focused on improving different areas of the house; the men will remodel the bathroom, while the women plan to update the kitchen.

The majority of both genders – 63% of women and 58% of men – intend to hire a professional for their next project. 56% of women feel they don’t have the skills or equipment needed for their planned project, while men value the experience that comes with hiring a professional (47%). Another difference between the genders is how they find professionals to hire. Women prefer to ask a friend for a referral (40%), search a review website like Yelp.com (18%), or ask a contractor for a referral (17%). Men also ask their friends for recommendations (30%), but prefer to use a search engine like Google.com (24%) or search Yellowpages.com (21%).

Motivated women who plan to do DIY prefer it because it gives them a sense of personal satisfaction (41%), while men who do DIY like it to be more profitable (53%). Most men (74%) and women (75%) plan to buy materials at a building supply store like Menards, Home Depot, or Lowe’s, but that’s where the consistency ends. 10% of men intend to shop at Sears or IKEA (6%), while women will head to warehouse clubs like Costco (8%) or Walmart (8%).

NEXT YEAR
The inventory in today’s real estate market is very competitive, so it makes sense that many homeowners would choose to invest in remodeling their current home, rather than enter a bidding war. Plus, with the economy and housing market more stable, homeowners now have more income and capital, so they’re making renovations to create the homes of their dreams. Our study found that most homeowners are focusing on discretionary projects like kitchens and bathrooms, which may have been postponed after the housing crisis. Judging from our report, it looks like 2018 will be a profitable year for homeowners as well as contractors and material suppliers.