The world of home improvement is witnessing distinct generational influences as detailed by recent studies and industry insights. A report by the Home Improvement Research Institute (HIRI) sheds light on the differences among homeowners from various generations, focusing particularly on Millennials and Gen X. This research reveals intriguing patterns in spending, project preferences, and the technologies driving renovations.
According to the HIRI study, Millennials lead the way in annual home improvement spending, surprising considering their lower home equity and net worth compared to older generations. Despite financial concerns, this younger generation is actively reinvesting in their homes. Michael Neal, president of AAA Distributor, affirmed this trend during the Kitchen & Bath Industry Show (KBIS) held on March 18, 2025, stating, "The outlook is... there are a lot of people out there right now who need to remodel their homes." This sentiment reflects not just enthusiasm but also necessity as many homeowners navigate the impacts of shifting economic factors.
Gen X homeowners, on the other hand, face heightened financial anxiety, even though they are largely in positive financial positions. The HIRI report indicates these homeowners prefer to prioritize discretionary projects, mirroring the Millennials but with different motivations. Most of the generational cohorts express concerns over macroeconomic issues, affecting their approach to home improvement.
Interestingly, the study found energy-efficient products take precedence over sustainable construction across all generations surveyed. Homeowners seemed to prioritize practical benefits like cost savings and energy efficiency. Neal highlights this when he notes the dual incentives for upgrades: "We have... people who need to remodel because they have 2.5 to 3 percent interest rates." These low rates make moving less attractive and drive homeowners to invest more heavily in their current residences.
At KBIS, held at Las Vegas with over 40,000 attendees and more than 250 exhibitors, industry experts gathered to discuss these trends. Executives from AAA Distributor noted the remarkable comeback of mid-century modern design, featuring warm wood tones, large-format tiles, and latest design innovations. The emergence of the "concealed kitchen"—a minimalist approach to kitchen design—was particularly noted by designers showcasing their work at the event. Artistic and creative applications for bathroom tiles are also gaining momentum, showcasing how aesthetics merge seamlessly with function.
The connection between modern home improvement trends and the aftermath of the 2024 natural disasters, including hurricanes and wildfires, cannot be ignored. Homeowners are not only interested in upgrading their spaces but also focused on repairs from recent calamities. With the knowledge gained at KBIS, industry leaders like Neal are optimistic about addressing these pressing needs, rooting growth potential within the market's renewed focus on home improvement.
The demand for renovations is expected to continue its upward trend, especially as millennials demonstrate greater capabilities and interest in DIY projects. The HIRI study concluded this group is significantly virulent for hands-on projects, driven by intermediate experience levels. Meanwhile, Gen X's engagement with professional services for project execution suggests shifting priorities as they age.
This generational divide signifies more than just spending habits; it reflects changing values about home ownership, space utilization, and environmental consciousness. The emphasis on energy efficiency not only aligns with cost-saving goals but also displays a growing awareness of sustainability issues among all demographics.
While technology plays an integral part, the emotional connection homeowners feel toward their spaces emphasizes the deeply personal nature of home renovations. Each project undertaken is not merely about aesthetics or value enhancement—it is tied to aspirations, comfort, and identity.
Looking forward, it will be fascinating to see how these generational differences shape the future of home improvement. From Millennials' proactive approach to Gen X's careful deliberation, the dynamic nature of home improvement will continue to evolve, influenced by both personal and economic factors.
With the industry's focus on rediscovering timeless designs and incorporating modern functionality, the road ahead is poised for exciting developments. Homeowners, whether driven by necessity or desire, will find new avenues for expression through their improvement projects, resulting from the thoughtful intersection of past styles and contemporary needs.
