First-Time Millennial Homeowners Are Aspirational But Practical

Better Homes & Gardens, Meredith Corp.’s leading lifestyle brand that reaches nearly 40 million readers each month, today released findings from its 9th-annual survey on attitude and behavior trends of homeowners in the U.S.

This year’s research looked at Millennial homeowners ages 22-39, especially Millennial “firsts” – those living in their first homes that they’ve owned for five years or less — see homeownership as a good investment, with 85% viewing owning a home as an important part of their “American Dream.”

However, the study also found that Millennials, especially Millennial “firsts,” are extremely practical about homeownership. While they have aspirational dream homes, they have a realistic approach to their goals and budgets when it comes to home buying and renovating.

“These first time Millennial homeowners are focused on building equity – not debt,” explained Jill Waage, Editorial Director of Digital Content and Products at Better Homes & Gardens. “They are strong believers in being able to afford their dreams as they achieve them and not over stretch themselves.”

According to the survey, Millennial “firsts” are financially conscious and aim to accomplish home goals as they progress through life stages and become more financially stable.

In fact, only 50% of “firsts” are willing to spend top dollar to get exactly the features and quality they want, while only 36 percent are willing to take out a loan in order to take advantage of a deal.

“Firsts” instead will make trade-offs, including waiting and doing DIY projects to get what they want when they can afford it.

  • “Firsts” are more likely to live in lower-end homes that are aging and in need of fixing up. Fifty percent of “firsts” said when they moved into their current home it required some degree of repair or remodel –ranging from minimal to considerable.
  • When it comes to home improvement needs, only one in four “firsts” say their primary approach is to pick up the phone and pay someone, compared to 40% of total Millennials.
  • Three out of four “firsts” do some degree of DIY in their home.
  • Nearly 90% of “firsts” are very or extremely interested in learning about home repair and home improvement projects.

The top interior DIY improvements for which Millennial “firsts” indicated the greatest need for information include simple but stylish projects that add value to their home, including: painting walls, installing tile and installing light fixtures.

Other findings revealed that Millennial “firsts” have modest aspirations for their future homes. Their greatest desires are for practical living spaces including renovated kitchens (64%), renovated bathrooms (60%), and deck/patio space (59%).  On average, they would like mid-sized homes around 2116 square feet.

“Millennials and Millennial ‘firsts’ are paving their own paths in homeownership based on their own budgets, timeline and needs,” explained Waage. “These ‘firsts’ are replacing big-budget homes and expensive renovations with patience, frugalness and practicality.”

SOURCE: Meredith, 1716 Locust Street, Des Moines, IA 50309

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