Millennials are reaching that wonderful stage in life that requires what they call “adulting”. This term often refers to things like going to college, getting a job, paying bills, buying a car, and (hopefully) moving out of their parents’ basement. In short, millennials are growing up and entering the real world.
This has been good news for the housing market, considering millennials have been the largest group of home buyers (34 percent) for the fourth consecutive year, according to NAR’s 2017 Home Buyer and Seller Generational Trends study. That’s four percentage points more than the baby boomers buying homes. So, the question is… what kind of homes are these millennials purchasing? And what is the best way to fund home improvements?
The Typical Millennial Home
Many millennials are first-time buyers. With a hot housing market, this group is focusing on being able to afford their new property. As a result, many of these millennials are purchasing well within their budget and planning for renovations down the road.
The latest NAHB tracking survey revealed what millennials wanted most from their new homes, including:
A nice living room
Space for a laundry room
Both a shower and tub available in the master bath
Hardwood floors on the main floor
And a patio or front porch
However, these new homebuyers can’t always afford houses that meet their desires. So, they settle on homes they can work on over the years, adding those features over time. The National Association of Homebuilders also found that while 90 percent of all millennials say they eventually want to buy a house, many prefer to skip the starter home altogether. They want to find the house to live in forever, keeping home improvement as their primary solution.
Meaning for the Home Improvement Industry
This is good news for the home improvement industry! These millennials will keep you busy. Similar to what millennials want in their new homes, here’s a list of the most common home improvement projects to expect:
Remodeling the Kitchen
Building a Deck
Replacing the Roof
Remodeling the Bathroom
According to the Home Improvement Research Institute (HIRI), total home improvement products sales are expected to increase 5.3 percent in 2018 to $387 billion in total sales. The Professional Market is expected to increase 4.4 percent and the Consumer Market will see a sales increase of 5.7 percent.
Now is the best time to go out and close deals for these home improvement projects.
Increasing Home Improvement Sales
Knowing your audience is key if you want to increase your sales, which is why we told you all about those millennials. Hopefully by reading this article, you now know what they want and how to speak (some of) their language. But understanding your customers and developing a relationship with them will only get you so far.
This target audience is more tech savvy and financially responsible than many think. It’s important to make sure the entire purchasing process is streamlined and simple for these customers. Having technology on hand that can provide instant quotes will come in handy, but it might scare them away when they see the final price. The simple solution to that challenge is to be more upfront with financing options, which could help you close more deals.
After all, what sounds better to you: it’s going to cost $10,000, or it’s going to cost $199 per month? Financing is the best way to fund home improvements.
Best Way to Fund Home Improvements
That’s where we step in. Offering financing to your customers is a must, and we have all the tools to help you succeed.
Medallion Bank provides affordable customer financing for window, siding and roof replacements, kitchen, bath and basement remodels, HVAC, and solar PV installations. We want to help your business grow with our programs, which emphasize:
Low monthly payments with customer-friendly loan terms
Friendly and personal customer service for contractors
The best modern technology and responsible lending
Contractors often sign up with us because of our compelling no-fee loans. But they stay with us because they know that, as a partner, we care about their business long-term.