Spending on home improvement, maintenance, and emergencies grew 17% from 2017 to 2018, according to HomeAdvisor's 2019 State of Home Spending report. The report finds that the average total spending per household on such home services increased to $9,081 in 2018, with home improvement spending commanding the largest share (83.3%) of service spending. The increased rate of wage growth, the growing cost of skilled trade labor, the cultural focus on design aesthetics and quality of life, and better home improvement tools are all likely to have contributed to the increase in per-household spending, HomeAdvisor finds.
According to HomeAdvisor, for every $1 spend on home maintenance, homeowners are spending $5 on home improvements. Room remodels rank as the most popular home improvement project, with HomeAdvisor reporting bathroom remodels as the most popular project for the second consecutive year. Replacing or repairing damage, defects, and decay rank as the number one reason for spending on improvement projects, according to HomeAdvisor. The report finds homeowners are prioritizing new appliances, roof replacements, and hardwood refinishing in addition to room remodels in the coming year. The report finds homeowners undertake an average of 2.2 home improvement projects per 12 months.
Generationally, HomeAdvisor finds motivations for home improvement projects differ. Millennials are most likely to complete home projects to increase a home's value. Baby boomers and Gen Xers are more likely to be motivated to "modernize" their homes, while millennials and the silent generation are more likely to be motivated to "improve aesthetics and design."
When researching projects, millennials used the internet more than any other generation but were less likely to ask a previously used contractor than baby boomers and the silent generation. Gen Xers are the most likely to check big box stores during their project research, while the silent generation is the least likely to check big box stores. Millennials have a greater focus on the return on investment (ROI) of home improvement projects and are more likely to factor ROI into their spending decisions.
"It makes sense that first-time home buyers complete more home improvement projects and spend more money on home services," Mischa Fisher, HomeAdvisor's chief economist said. "Many of the millennials who bought a home in the last few years are seeking upgrades to increase the value of their homes and improve aesthetics. This focus on return on investment from Millennials is likely due to a combination of typical youthful focus on wealth accumulation and their comparatively poorer financial situation driving a hunger to recover relative to their older cohorts."
Data included in the State of Home Spending Report is based on an online survey conducted by HomeAdvisor. The survey was disseminated among 1,488 adult homeowners from April 9-22, 2019. All survey respondents reported having decision-making responsibility related to home improvement, home maintenance, and/or home emergency spending completed in the previous 12 months.
