Baby Boomers, born between 1946 and 1964, are emerging as the leading spenders in the home renovation market. Instead of downsizing or moving into new properties, this generation is pouring substantial money into remodeling projects, driven by lifestyle preferences, economic conditions, and the desire to age comfortably in their own homes.
Renovation Spending by Boomers
Average Spending (2024): $14,140 per household, the highest of any generation.
Comparison:
Boomers: $14,140
Millennials: $12,101
Gen X: $11,781
Gen Z: $9,592
Spending Gap: Boomers outspent Millennials by nearly 17% and Gen X by about 20%.
Why Boomers Are Choosing Renovation Over Moving
- Financial Position
Many Boomers own their homes outright, freeing them from mortgage debt.
Renovations are seen as a better use of assets than taking on new real estate costs.
- Aging in Place
Remodeling projects often focus on accessibility and comfort (e.g., walk-in showers, single-floor living spaces).
These changes allow Boomers to stay in their homes long-term.
- Market Conditions
High interest rates and elevated property prices make buying a new home less attractive.
Renovating offers better value than moving.
- Lifestyle Preferences
About 54% of Boomer homeowners say they never plan to sell their homes.
Nearly half reported wanting to enjoy their money now, rather than preserve it solely for inheritance.
Broader Remodeling Market Trends
National Spending: Projected to reach $608 billion in 2025, maintaining strong post-pandemic momentum.
Growth Drivers:
Rising home values.
Aging U.S. housing stock.
Desire to customize homes rather than relocate.
Long-Term Trend: Between 2019 and 2023, remodeling spending increased 27% (inflation-adjusted).
Implications
For the housing market: Fewer homes are being listed as Boomers choose to remodel, tightening housing supply.
For contractors and suppliers: Strong demand for remodeling services, especially in kitchens, bathrooms, and accessibility upgrades.
For future generations: Millennials and Gen Z may face delayed opportunities to purchase Boomer-owned homes.
Conclusion
Boomers are leading the home renovation surge, spending over $14K annually to remodel instead of relocate. Their choices are shaped by financial security, the appeal of aging in place, and unfavorable market conditions for moving. This trend underscores a generational shift where older homeowners prefer investing in comfort and personalization rather than entering a competitive housing market.
