Buyer's remorse has settled in with the latest generation of homebuyers. Millennial homebuyers' remorse is the unavoidable result of an overheated and competitive housing market where many new homebuyers were priced out or bought fixer-uppers.
A recent survey of 1,000 U.S. homeowners by Clever Real Estate found that nearly 50% of millennial respondents felt a least some buyer's remorse following their purchase, compared to only 20% of Baby Boomers.
For builders and designers who can help enhance and personalize a home to meet millennial homebuyers' preferences, millennial homebuyers' remorse represents an opportunity to offer their expertise, advice and services.
The same study of millennial homeowners found that 80% of millennials are planning major home renovations in the next five years, with millennials planning between three and four major projects during that period and the average Baby Boomer planning between two and three.
What builders and designers should know about millennials
When it comes to home design, millennials are focused on customization, technology, sustainability and living a clean, minimal lifestyle, all of which is reflected in the layout and design of their homes and kitchens.
But because Millennials are saddled with student loans and other debt, they're also frugal about where they put their renovation money. They want the most bang for their buck and choose to renovate rooms where they'll spend most of their time, including the kitchen and any outdoor living spaces.
In many cases, millennial homeowners are unaware of just how much a renovation project will cost. An annual report by Houzz found that on average, homeowners spent $15,000 on home improvement projects in 2021. Kitchen renovations topped the list of popular interior upgrades at 27%, followed by bathroom remodels and additions. The average kitchen renovation, according to Houzz, was between $20,000 and $40,000, while the average main bathroom remodel costs were between $12,000 and $18,000.
The same report found that the median spend among millennial homeowners for home renovation projects was $10,000, with the top 10% suggesting they would invest $65,000 in a renovation project.
Millennial home renovation trends to watch
Multiuse space
Millennials had embraced telework and remote work even before the pandemic, so it's no surprise they've placed a premium on flexible, productive spaces that offer them a place to work, play and relax. Whether it's an open concept kitchen with plenty of space to socialize and cook or a home office that doubles as a workout room, millennials want spaces that check off more than one box.
Smart technology
Millennials are technology-friendly. They expect most of their appliances and home technology to be connected and integrated and that they'll be able to control most features in their homes through their smartphone, home assistant or tablets. They also expect to have a centralized AI-powered home hub that connects a range of smart home appliances, thermostats, lights, speakers and TVs to further help them customize their homes.
Statement appliances
Millennials grew up watching competition cooking shows like "Top Chef" and "Chopped." They want to replicate those experiences in their own kitchens complete with customizable appliances that help them look like seasoned pros. They aren't shy about color, either, leaving the all-white and stainless-steel appliances to previous generations. Samsung's Bespoke line of appliances fits the bill. Homeowners can choose the colors and features of each appliance in the line to create a personalized kitchen that reflects their unique style and skills.
How can builders and designers prepare for millennial expectations?
Understanding millennials and their preferences could be the key to winning their business. Whether it's an open format kitchen with a large island, smart appliances that are controlled through a tablet or phone, or customizable appliances that allow homeowners to choose the color and features, there are several creative solutions to satisfy millennial homebuyers' design preferences and ease their buyer's remorse.
Builders and designers should make sure they're up-to-date on all the design options out there. They have to be willing to educate millennial homebuyers, help them prioritize renovation projects and customize their own offerings to meet millennials where and how they want to live.