The fixer-upper culture is gaining traction among millennial homebuyers given the affordability of these homes as an initial purchase. However, it is interesting to note that many young Americans rely heavily on online platforms for inspiration.
“Pins & Properties: Chasing Your Dream Home” a report put together by Chase Home Lending and Pinterest, reveals that millennials are the largest group of homebuyers today. Nearly two-thirds of millennials consider homebuying a goal they are determined to reach in their lives and 70 percent consider it the best long-term investment. Nearly 95 percent of the millennials said they planned some kind of renovation in the next three years.
“For the second year in a row, millennials make up the largest group of homebuyers, seeing the value of this smart investment,” said Amy Bonitatibus, Chief Marketing and Communications Officer for Chase Home Lending.
As most first time homebuyers do not have the income to afford their dream home right away, they purchase starter homes and make substantial upgrades eventually. Eighty-seven percent millennials are planning some kind of renovation and 68 percent intend to spend at least $20,000 on renovation projects. Seventy-five percent plan to finance home renovation projects by tapping the equity in their homes, the report found.
Millennials are paying close attention to smaller and affordable renovation and ideas. Logistics and affordability are key factors for many who are preparing for a growing family.
Jon Kaplan, Global Head of Partnerships, Pinterest, said, “Chase and Pinterest have similar missions in helping people make their dreams a reality. The partnership between our companies on the Chase Dream Boards visual interactive experience demonstrates the way in which we're able to offer personalized recommendations that deliver unique value and guidance to potential home renovators.
The report noted that pinners continue to prioritize DIY projects at home for decor and personalization, setting up a gym or laying bathroom countertops. Millennial homeowners also ranked ‘new landscaping’ as their top choice for renovation space. Projects like a closet overhaul are increasing over 7,000 percent in year-over-year search results.
Pinterest said that it has experienced an increase in searches for ‘gold bar carts’ by 300 percent since 2017. Those looking to remodel outdoor areas were found 1.7times as likely to search for backyard party ideas. Interestingly, these Pinterest users are more than 1.5 times as likely to search for topics on budgeting as financial planning assumes great significance among first-time homebuyers.