Homeowner demographics are changing. As a home improvement contractor, you interact with both old and young homeowners each day. So, when you connect with someone needing repair, installation, or renovation services, it is best to adjust your approach to match the person you are meeting.
One of the best ways to grow your contracting business is to improve how you market to homeowners continuously. For example, dealing with a new generation of homebuyers should dictate how you approach your sale. What is it that millennials are looking for versus boomers? Once you figure that out, ask yourself what message will resonate with younger versus older homeowners.
Homeowner Trends to Consider
While the aging-in-place demographic makes up the majority of homeowners, millennials are not far behind. The pandemic shifted millennial living preferences, and we see an increase in millennial homeownership.
As the younger demographics are stepping into homeownership, contractors now have to market to millennials and baby boomers.
Keep in mind one crucial point: a one-plan-fits-all approach in marketing will not work on both generations. Instead, you need to adapt to current conditions and create agile/diverse marketing plans that specifically speak to the corresponding generation.
Breaking Down Homeowner Demographics
We can categorize homeowners in four generational demographics:
- Retirees: 65+ and looking to age in place
- Middle Age: Mid-40’s through the mid-’60s
- Millennials: Mid-20’s through the early ‘40s
- Generation Z: Recent college graduates and entering the workforce
While the aging-in-place demographic makes up the majority of homeowners, millennials are not far behind. The pandemic shifted millennial living preferences, and we see an increase in millennial homeownership.
Aging in Place
This demographic includes retirees who are aging in place and preparing for retirement in the coming years. It is important to keep in mind that aging in place clients are more than likely looking for a project that will elevate the feel of their forever home and make it safe and easier to navigate amidst health challenges.
Therefore, we recommend adjusting your marketing message that speaks to this demographic desires and considering where would be the best place a homeowner would see this message.
Younger Homeowners
Thirty-two percent of our homeowners are first-time home buyers. Often, Millennials and Generation Z are first-time home buyers. Additionally, younger homeowners use the internet to find everything they need, including information about home improvement projects and finding the best contractor.
Understanding this concept will help you switch your marketing efforts from traditional to digital. We have found that 56 percent of homeowners spend 1-5 hours researching their projects through our recent homeowner surveys. To help capture the attention of young homeowners, provide all the essential details you have regarding the project, such as:
- Timing of starting and completing the project
- The cost of the project and additional financing solutions
- Materials and the supply shortage
- Eco-friendly solutions
All home improvement contractors need to understand the different generational trends among homeowners to effectively cater to their marketing messages/sales pitches and close deals.
Modernize Survey Results: Homeowner Demographics
This October, we surveyed over 6,500 homeowners to collect information about homeowner demographics and current industry trends. Here is a snapshot showing the demographics among survey participants:
- 6 percent of homeowners are between 31-40 years old
- 40 percent of homeowners are 60+ years old.
It is also insightful to see where your potential leads are in the homeownership journey:
- 32 percent are first-time homeowners
- 26 percent are second-time homeowners
- 33 percent live in their forever home.
Even though the older generations are still leading in homeownership, we see the trends change as millennials get older. In addition, the younger demographics are building up their savings and preparing to buy homes. Keep these trends in mind when choosing your marketing strategies – you need both digital and traditional marketing to connect with homeowners of all ages.
Modernize is Here For You
Are you ready to learn more about current trends in the home improvement industry? At Modernize, we are empowering home improvement contractors by sharing valuable insights about homeowner demographics and preferences.
