This brief analysis go deeper into Gen Z’s home renovation preferences and funding choices look the way they do based on their Homeowners Renovations Survey and the Generational Renovation data.
Generation Z Home Renovation Priorities
What’s Gen Z outlook on home renovations. We look at their homes upgrades priorities considering most are new homeowners in their first home.
Gen Z & Home Upgrades: Only 16% Prioritize Better Living Conditions
Gen Z’s lower focus on improving living conditions through renovations could stem from their relative youth and the fact that many are likely first-time homeowners. They might not yet feel the need to make substantial changes to their living space because they are still settling into their homes. Additionally, their homes might already be more modern, reducing the immediate need for upgrades.
Gen Z & Higher Sell Prices: Only 19% Prioritize Increasing Home Value
The low priority on increasing the sell price suggests that Gen Z homeowners are not as focused on flipping homes for profit. This might be due to their longer-term view of homeownership, where they see their home as a place to live rather than an investment to sell in the near future. It could also reflect economic realities, such as lower home appreciation rates in certain areas or the challenge of affording new homes in today’s market.
Planning for a Bigger Family: A Priority for 26% of Gen Z Homeowners
The relatively high priority on preparing for a bigger family suggests that Gen Z is planning for future family needs, even if they don’t currently have large families. This might indicate that they are forward-thinking, possibly influenced by the increasing difficulty and cost of moving to a larger home.
Long-Term Living: 18% of Gen Z Homeowners Focus on Making Homes Last
Gen Z’s strong focus on making homes suitable for long-term living likely reflects a desire for stability, influenced by witnessing economic uncertainty in recent years. They might be less inclined to move frequently, opting instead to invest in their current homes to make them more livable for the long haul.
Room Additions & Landscaping: How Gen Z Prioritizes Outdoor Improvements
At 15% the lower priority on room additions suggests that many Gen Z homeowners may have bought homes meeting their space needs and that they are living in smaller, more affordable homes. The above-average interest in landscaping might reflect a desire to enhance curb appeal or create outdoor spaces for relaxation and entertainment, which has become increasingly popular, especially post-pandemic.
Gen Z Preferred Home Renovation
Gen Z and Kitchen Renovations: Why Only 15% Prioritize It
Gen Z’s lower emphasis on kitchen renovations can be tied to their lifestyle and small budget after buying their first home. Many might prioritize other spaces if they spend less time cooking at home, perhaps due to busy work schedules or a preference for dining out. It could also reflect a trend toward more minimalist or functional kitchen designs that don’t require extensive remodeling and lower investment.
Bathroom Renovations: 17% of Gen Z Homeowners Keep This Low on Their List
Bathrooms are also not a major focus, which might be because Gen Z homes, often newer or less customized, already have adequate bathrooms that don’t require significant upgrades.
Bedroom Remodel: 18% of Gen Z Focus on Personal Comfort
The relatively higher focus on bedroom remodel suggests that Gen Z values personal space, possibly due to the importance of creating a comfortable, restful environment amidst busy lives. This could also relate to the rise of remote work, where bedrooms may double as home offices. The lower cost of a bedroom remodel is also an important factor to be high on the list.
Outdoor Upgrades: 10% of Gen Z Homeowners Invest in Outdoor Living
The interest in outdoor renovations aligns with the growing trend of creating outdoor living spaces. However, the lower percentage might indicate that, for many, this is a secondary priority after addressing more immediate indoor needs.
Attic & Basement Finishing: Just 7% of Gen Z Focus on These Areas
Gen Z’s low interest in attic or basement renovations could be because they often live in smaller homes or apartments without these spaces, or because they prioritize other areas of the home.
Gen Z Average Renovation Budgets
Gen Z’s Renovation: Why They Spend Less Across the Board
Gen Z’s lower spending on renovations across the board likely reflects several factors. Many are early in their careers and might not have the disposable income that older generations do. They might also be more budget-conscious due to economic pressures such as student loan debt, rising living costs, and the impact of the pandemic on their financial stability. Additionally, Gen Z may prioritize cost-effective or DIY solutions over extensive renovations, influenced by their digital savviness and access to online resources for budget renovations.
Energy Efficiency Tops Gen Z’s Renovation Spending at $5,100
The higher investment in energy efficiency aligns with Gen Z’s strong environmental consciousness. They are more likely to prioritize sustainable living, which not only benefits the environment but can also lead to long-term cost savings on utility bills. This focus on sustainability could also be driven by awareness of climate change and a desire to reduce their carbon footprint.
How Gen Z Funds Their Home Renovations
Gen Z and Renovation Funding: Why Only 10% Use Savings
Gen Z’s lower reliance on savings for renovations may reflect their limited financial reserves, as they are early in their careers and might still be building up their savings. This could also indicate a preference for keeping savings as a safety net rather than spending it on home improvements.
Limited Home Equity: Just 14% of Gen Z Taps into This Resource
Given that many Gen Z homeowners are first-time buyers, they likely haven’t accumulated much home equity yet, which explains their lower reliance on it for funding renovations. This is in contrast to older generations who have owned homes for longer and have more equity to tap into.
Renovation Loans: 37% of Gen Z Homeowners Borrow to Upgrade
The high reliance on renovation loans suggests that Gen Z is comfortable with borrowing to finance home improvements. This could be because loans offer an accessible way to spread costs over time, making renovations more affordable despite their lower savings.
Cash Flow and Credit Cards: How Gen Z Manages Renovation Costs
The lower use of cash flow and higher reliance on credit cards may indicate tighter monthly budgets, where large sums aren’t readily available, pushing Gen Z to use credit for smaller, manageable payments. The use of credit cards might also be driven by the desire to earn rewards or points, or as a way to manage short-term cash flow issues.
End Note:
Gen Z’s approach to home renovations reflects their unique position as younger, first-time homeowners who prioritize long-term living and sustainability while remaining financially cautious.
Their spending and funding choices indicate a generation that is pragmatic, resourceful, and willing to leverage available financial tools to improve their homes within their means.
Their preferences also suggest a forward-looking mindset, focused on making their homes comfortable and efficient spaces for the future.
Related Research
Generational Home Renovations Survey
