CNBC: Millennials and First-Time Homeowners Are Spending More on Home Upgrades

Even though millennials are buying homes later in life than previous generations, they’re willing to make costly renovations.

Even though millennials are waiting longer to become homeowners than previous generations, a new study from Houzz & Home Survey shows that they’re willing to spend more money on renovations.

The study, which is highlighted in a recent CNBC article, shows that people between the ages of 25 and 34 spent an average of $26,200 last year on home upgrades. That’s a seven percent jump over the last year. First-time homebuyers are also spending more on their home upgrades, with that average climbing by 22 percent to $33,800. According to the survey, this is a positive sign of confidence in the housing industry.

Nino Sitchinava, principal economist at Houzz, told CNBC in an interview, “It’s a pretty strong reflection of the housing market condition. The home renovation market has mostly recovered, and is in line with the prerecession peak.”

In order to make those renovations and upgrades possible, millennials are relying on credit. Even though cash is still considered king, the use of credit cards to fund renovation projects increased by two percent to 23 percent year over year.

Sitchinava said, “We really haven’t seen changes in the way homeowners are leveraging home equity for example or other debt financing. So that fact that credit cards are coming up to the line was pretty surprising.”

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