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New Stats Show Who Is Buying Homes & Doing Upgrades
Remember when many business owners were collectively rolling their eyes at the mention of Millennials and their buying habits? Fresh research from HIRI puts things in perspective.
The Home Improvement Research Institute (HIRI) just released its Generational Differences in Home Improvement Activity Report, which is based on data from the U.S. Census Bureau’s Biennial American Housing Survey (AHS) and the National Association of Realtors (NAR).
Unsurprisingly, most homeowners and home sellers appear to be mostly Baby Boomers or older, while home buyers are primarily Gen X or younger — but there were some surprises in the statistics.
First of all, here’s a refresher on demographics:
Gen Z (those under 30)
Millennials (ages 30 to 45)
Gen X (ages 46 to 61)
Boomers (ages 62 to 80)
Silent Generation (ages 81+)
HIRI’s report shows that the 2026 market is still being driven by Boomers and Gen X. When it comes to homeownership in the U.S., Boomers are the largest segment at 41%; Gen X make up 18%; and the Silent Generation comes in at 15%. HIRI noted that about 45% of the sellers’ market consists of Baby Boomers.
When determining the percentage of Millennials and Gen Z owning homes, HIRI research found that Millennials are the second-largest group of homeowners in the U.S., with 25% of the inventory. Gen Z only contribute about 1% to homeownership based on the data in the 2024 survey.
Results in HIRI’s next iteration of stats may signal a shift, as Gen Zers enter their late 20s, which is historically when consumers begin their homeownership journey. HIRI cautions, however, that the median age for buying a first home in the U.S. just hit 40 years old, based on the NAR’s 2026 Home Buyers and Sellers Generational Trends Report. The younger generations are having to delay their homeownership goals as a result of the low housing inventory in the U.S., high mortgage rates, and increasing cost of living.
That said, a recent survey from Coldwell Banker Real Estate noted that 80% of Gen Zers say they will forego other major life decisions in order to buy a home.
Here are some of the key trends that HIRI points to as emerging from this analysis:
Millennials Lead in Home Improvement Spending
According to the most recent research, Millennials lead in annual home improvement spending, with one in five spending more than $5K on projects despite lower levels of home equity and net worth. According to additional data from the National Association of Realtors, Millennials comprised the greatest percentage of homebuyers in 2024, at 38%; Gen Xers contributed another 24%. Home maintenance is the most common type of home improvement project among all homeowners.
HIRI went on to note that Millennials and Gen X complete repairs and renovations at higher rates than Boomers. When it comes to average home improvement spending, each successive generation spends significantly less. The average spend for each generation is:
• $5,173 for Millennials
• $4,521 for Gen X (approximately 12.6% less than Millennials)
• $3,595 for Boomers (approximately 20.5% less than Gen X)
• $3,188 for the Silent Generation (approximately 11.3% less than Boomers)
Understandably, as each generation ages, they spend less on non-essential home improvements. Millennials spend about 51% more than Gen X, while Gen X spends 32% more than Boomers. Boomers, in turn, spend around 9% more than the Silent Generation.
Gen X Feel Elevated Anxiety About Inflation & Finances
HIRI’s report findings confirm that among the top macroeconomic concerns for American homeowners are the economy, inflation, and personal finances. Worries about the economy have a nearly equal effect on all generations, being noted as a concern by:
• 56% of Millennials/Gen Z
• 57% of Gen X
• 58% of Boomers/Silent Generation
Despite having a relatively strong financial position (about 57% make $80K or more), a higher percentage of Gen X homeowners express concern about inflation and personal finances than the other generations, according to HIRI’s findings.
Quality + Price Take High Priority for All Generations
When it comes to selecting products and materials for home improvement projects, research showed that quality and price are approximately three times more influential than other factors for all generations. According to HIRI’s report, looks and aesthetics are slightly more important for Gen X and ease of installation is a bit more meaningful to the Boomer/Silent Generation.
HIRI’s advice to retailers is to concentrate on messaging and marketing that focuses on product quality and price, adding that Millennials are more heavily influenced by discretionary factors such as home enjoyment, style, and quality of life. These motivators descend in importance with each subsequent generation.
Energy Efficiency Matters More Than Smart & Sustainable Products
While sustainability, energy efficiency, and smart home products are all terms homeowners recognize, HIRI’s report shows energy efficiency is the most important factor, influencing nearly 75% of homeowners in each generation. Selecting sustainably built products ranked as the second most important factor, followed by smart home integration.
Cost savings and comfort were cited as the primary motivation, regardless of demographic.
Millennials Prefer Online Channels
Although all generations use both online and in-person methods when searching for home improvement help, HIRI’s research noted that Millennials use online resources the most, particularly for looking up product research and user reviews.
Predictably, young homeowners use social media – particularly YouTube – significantly more than other age groups: 39%, compared to 23% for Gen Xers and 9% for Baby Boomers and the Silent Generation. HIRI suggests manufacturers and retailers have a broader social media presence to engage younger homeowners.
HIRI’s research found that Boomers are the most likely to visit local stores for home improvement projects and rely on recommendations from friends and family members. Millennials are more likely to prioritize product details, safety information, and reviews before making a purchase.
Millennials Show Optimism About Home Projects
According to HIRI, in 2026 Millennials have optimism about the home improvement sector and feel more positive about starting projects in both smaller endeavors (below $5K) and bigger projects (above $5K) and hiring a professional.
Based on data from HIRI’s 2025 Homeowner Project Activity Tracker, Gen Z homeowners have the highest intention of increasing their home improvement spending over the next 12 months, followed by Millennials and then Gen X homeowners. Meanwhile, Boomers are intending to spend a little less. Additionally, this generation of homeowners possesses more intermediate DIY experience than older homeowners, which includes tasks like installing hardwood flooring or replacing a window. They also are more likely to take on additional projects as they age.
Aging in Place Continues to Trend
Aging in place and multi-generational housing trends will continue to fuel increased home improvement demand in the years ahead, according to HIRI. The U.S. Census Bureau estimates that only 10% of American homes are “aging ready,” which means there is ample opportunity within the remodeling market to address this gap.
In 2024, the percentage of each generation who completed an aging-in-place upgrade was:
• 25% of Millennials
• 26% of Gen Xers
• 29% of the Boomer/Silent Generation
HIRI’s recent Aging in Place Study also found that homeowners who undertake aging-in-place projects tend to complete more total renovations and spend significantly more, especially in higher-cost tiers, like the $5,000 to $9,999 range and the $10,000 to $24,999 range. Additionally, about 11% of Millennials also had a family member move in last year. HIRI noted it is seeing a strong current of multi-generational home buying, fueled by cost savings and the need to care for aging parents and predicts this is likely to drive future home improvement projects to accommodate multiple family units.
HIRI reminds home industry professionals that this data suggests that since both Millennials and Gen Xers search for product information online before purchasing, manufacturers and retailers should provide detailed information about how to use their products in applicable projects on their websites and through social media platforms.
HIRI noted that since its research findings show younger generations are planning more, home product manufacturers and retailers should consider offering online resources – such as project tutorials and guides – that assist with planning and organizing.
By understanding key generational differences and applying the information gleaned from these insights, home improvement manufacturers can create and market products that appeal to specific age groups and tailor their marketing and sales strategies accordingly.
The full Generational Differences in Home Improvement Activity Report is available from HIRI.
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