As  millennials  take  over the housing market pushing out other generations to become the majority of homebuyers and sellers' real estate agents, contractors, and even neighborhood hardware stores are making note of what millennials want in a home.

Though  the  economy,  job  market,  and this generation's notoriously crippling student debt have shaped the relationship between millennials  and  homeownership,  new  research  indicates  that  the  COVID-19 pandemic has influenced a rise in home renovation projects  among  millennials.  In  fact,  in  comparison  to  older  homeowners,  millennials  spent  more  of  their  time in quarantine executing home improvement tasks.

What Millennials Look For in A Home

Millennials  make  up the generation born between 1981 and 1996. Currently, about half of all millennials are in their 30s. While this generation  is  often blamed for the downfall of industries (see: department stores, casual dining, and cable TV), the housing market should be thanking millennials for breathing new life into it.

A  Harvard  University  report  showed   that   after  years  of  economic  uncertainty  following  the  2008  financial  crisis,  millennial homebuyers  helped  first- time  home  buying  activity  rebound  in  2017.  In the years that followed, the average age of millennials looking to buy their first home dropped from "around 34 to 35 initially to around 32 to 33 now," according to Sheryl Palmer, CEO of home builder Taylor Morrison, in an interview with CNBC.

While  older  and  more  affluent  millennials  gravitate  toward  "move-in"  ready  homes  and  new  construction, the majority of this generation's  home  buyers  opt for existing homes. When looking for a home, they prioritize the neighborhood and location as well as the overall price. On the whole, millennials make smaller down payments when it comes to buying a house.

Even  though  they don't have the capital that previous generations had to make a big down payment, that doesn't mean millennials don't  want  to  invest  in their homes to make them exactly to their liking. Many see a fixer-upper as an investment opportunity and believe  that  tackling home projects will save them money in the long run. The 2019 U.S. Houzz and Home study revealed that 54% of millennials surveyed said they preferred to renovate their current home as opposed to buying a new home.

The Rise of DIY During Lockdown

Home  improvement  projects  ranged  from  painting  in  the  house  and  garden  or  yard  landscaping  to re-caulking and re-tiling kitchens  and  bathrooms.  When  OnePoll  published  the  survey  results in the late summer of 2020, the average homeowner had already attempted four different home improvement projects since the start of the pandemic.

More  time  at  home  during  the  pandemic  has served to bolster the trend of millennials taking up the (blow)torch and embracing the  challenge  of  home  renovation  projects.  But , with  the  end  of  the pandemic seemingly in sight, what can real estate agents, contractors, and millennials themselves expect from this rise in home improvement moving forward?

When Millennials Seek Home Renovation Help

With  many  millennials getting  a taste for home renovation projects on a smaller scale, there's a good chance that, as the economy stabilizes,  homebuyers  and  owners  from  this  generation  will  undertake  larger projects. However, it stands to be seen if the DIY trend will extend to bigger and more technical renovations. 

Before  the  pandemic,  a  2019  Home  Advisor  State  of  Home  Spending  report  found  that  less  than 10% of millennials hired a contractor  to  complete  all  the  work  on  a  home  project.  The  main  reason  millennials  said  they sought professional help was because they didn't have the time and/or knowledge to do the renovation themselves.

According  to  the  National  Association  of  Realtors'  2019  Remodeling Impact Report,  many millennials are comfortable and even prefer taking on projects like painting. However, only two-thirds said they would take on a more involved project, such as putting up a  fence,  on  their  own. Similar to their baby boomer counterparts, millennials tend to hire professionals for large home renovation projects like kitchen and bath remodels.

When  you're  deciding  whether  or  not  to  DIY  your  home  improvement  project,  it's  important  to  consider  costs, time, safety, and  expertise.  Good  DIY  projects  for  homeowners  include  installing  a  new front door, refreshing bathroom fixtures, and basic home  maintenance  such  as  weatherstripping  windows. Every homeowner needs to know when to seek out professional help for their home renovations.

Why Contractors Should Prioritize Millennial Clients

Options  like  home  equity  loans  and home equity lines of credit mean even millennials with bad credit have ways to pay for home renovation  projects.  This,  coupled  with  the  fact  that  two-thirds  of millennials said they'd be open to putting an offer on a home in need of major repairs, proves that contractors and remodelers should prioritize outreach to potential millennial clients.

Even  before  the  COVID-19  pandemic,  millennials  had  a positive relationship with home renovation projects. While their financial situation, which for many millennials involves debilitating student debt, might have initially sparked their interest in fixer-uppers and home  renovations,  the  pandemic  has  emboldened  millennials'  DIY  spirit.   To  capitalize  on this generation of homebuyers and renovators,  contractors,  remodelers,  and  real  estate agents must tailor their marketing to millennials and position themselves as helpful partners on the home improvement journey.