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More Millennials Investing in Home Renovations

According to a new survey by Angi, millennials who bought homes during the pandemic ended up in homes needing more renovations than they intended, and if they didn't exceed their budget in the cost of the home, they were likely to do so in renovations.

In the search for more space, buyers prioritized location and family considerations over job security, and overall home buying intentions, priorities, challenges and experiences changed dramatically since March 2020.

"Millennials are driven by family considerations and a desire for safety and stability after the pandemic. The low inventory levels and tight housing market have driven them toward homes that need work, with over half purchasing homes needing renovations," said Oisin Hanrahan, CEO of Angi. "Homes are many people's greatest investment and due to the pandemic, we're spending more time in those homes than we ever anticipated. Understanding how the pandemic impacted the buying behavior of such a large, influential demographic will help Angi to better provide the services and support they need as new homeowners."

Of the millennials surveyed, 70% of those surveyed said the pandemic played a role in their decision to buy a new home, with more than a quarter (27%) saying it was the primary factor in their decision. They also shared that, due to the pandemic, their two top considerations for purchasing a new home were an increased desire for more space (56.9%) followed by peace and quiet (53.9%).

When asked about their employment, respondents reported that:

  • 16% changed jobs since their previous role wouldn't let them work remote.
  • 17% moved hoping their employer will let them work remote when the pandemic ends.
  • 30% are able to work their same job remote.
  • 17% switched jobs after being laid off due to the pandemic.
  • 20% found new jobs and moved for them

When it came to the home itself, 56% of millennials bought a home requiring minor or major renovations, despite only 42% beginning their search with the intention of buying a home that required renovations. Additionally, nearly half (46%) of all respondents have already gone over budget on renovations within the first year of ownership.

Among the 70% of respondents who are hiring pros to do at least part of their renovations, the majority (78%) are using online platforms to help identify pros to hire, and satisfaction is relatively high, with 64% rating the value of their home service pros as excellent or good.

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

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