A house is one of the most meaningful purchases a person will make in their lifetime. Not only do homeowners want their houses to reflect the hard work that led up to the purchase, but they also often plan to increase the value of their investment (tangibly and intrinsically) by continuously upgrading features of their homes to meet their needs. Enter your home improvement products brand.It comes as no surprise that homebuyers and sellers make up a significant segment of the home improvement market, but what projects are recent home buyers and sellers planning to undertake, and why? What home improvement products and materials do they most often purchase, and where?
Answers to these questions and more can be found in our 2024 Recent Home Buyers and Seller Report. This report provides a snapshot into current trends in pre-sale and post-purchase home improvement activities, including project types, spending levels, and contractor involvement, as well as the timing, motivations, and expectations for improvements and renovations, and their influence on the home-sale process. HIRI members have full access to the report as well as the raw data and tabulations. Learn more about HIRI membership.
As a manufacturer or retailer, data about current planning and purchasing trends can help inform your product development and marketing strategies for two highly active customer segments: homebuyers and home sellers.Here are some top takeaways covering the relationship between homebuyers and home sellers and home improvement activities:
In general, the number of first-time home buyers has also been steadily increasing over the past six years, or 61% in 2024 compared to 36% in 2018.Last year saw a surge in first-time home buyers, often driven by dissatisfaction with renting. Builders have been competing aggressively to capture first-time home buyers with incentives and rate buy-downs which contribute to narrower price gaps as a result of the limited existing home inventory within the housing market.
About 76% of buyers also sold their previous home when moving, compared to 42% in 2022. We’ve also observed that buyers are prioritizing value and neighborhoods over the charm of older homes. When asked why they purchased an existing home rather than a new home, about 67% of homeowners responded that it was a better value, or the price was right. About 52% said they liked the neighborhood.
Notably about 39% said they could fix up the home and add value, which has been an increasing trend since 2018.It’s also taking longer for buyers to get into a home compared to a couple years ago. Because of affordability constraints and tight inventory, searches lengthened, averaging 5.7 months in 2024, up from 3.6 months in 2022.
In the current housing landscape, manufacturers and retailers can focus on prioritizing providing affordable, value-driven home improvement solutions as prolonged buyer searches and affordability concerns shape demand for future home improvement.
Home purchase motivations in 2024 formed six key buyer groups: upsizers, downsizers, convenience seekers, space seekers, investors, and accessibility-focused buyers. Although there is some overlap between these categories, the upsizers and upgraders motivation group applies to the largest contingent, or 67% percent.
Downsizers encapsulates about 42%, and 39% of buyers are looking for convenience factors — such as being closer to work or family.By far, the most compelling motivation for buying was the desire for a better location. A third of buyers also cited financial motivations, or the belief that buying was more affordable than renting.
Manufacturers and retailers can focus on developing and marketing products that enhance home value, utilization of limited space, and convenience, in whatever form that looks like for any given product category. Consider what it will take to target upsizers and convenience seekers and consider ways to offer affordable, flexible solutions for downsizers and accessibility-focused buyers.
In 2024, homes purchased were smaller in square footage, with fewer bedrooms and baths, than in 2022, reflecting affordability constraints and shifting buyer priorities. For example, in 2022, about 41% of the homes had 4+ bedrooms, compared to 33% in 2024. The average square-footage in 2022 was 2,965, compared to 2,218 square feet in 2024, showcasing the effects of decreased purchasing power due to high cost per square foot prices.
Simultaneously, demand for larger lots has grown, signaling a shift in buyer preferences for more outdoor space. In 2024, 14% of homeowners purchased one acre or more of property, compared to 10% in previous years, and 19% had .5 to 1 acres, compared to 14% in 2022. Buyers favor move-in-ready homes, or those that don’t need any major renovations, while about 15% intended to and ultimately purchased a fixer-upper home, and 22% ended up with a fixer-upper, even though it wasn’t their intention.
Since 2022, DIY trends have shifted. Novice and intermediate skills have gained traction since 2022. We also can observe some generational trends in terms of DIY proficiency. In 2024, Millennials outpaced both Gen X and Boomers in reporting of both advanced and intermediate skill levels. Boomers were the largest cohort to report being DIY novices (41%) or be non-DIYers (14%).
Additionally, in 2024, Millennials were much more active in four of the top five current home improvement areas — which were full bathroom, half bathroom, kitchen, and bedroom upgrades. Yard, garden, or landscape projects were the one area where Boomers and Gen X homeowners invested a similar amount of time to improvements as Millennials.
In 2024, most homeowners renovated within the first year of moving to a new residence, with first-time buyers being more active than repeat homebuyers. Homebuyers focused on discretionary upgrades and interior renovations to improve longevity and functionality, favoring home improvements to their newly acquired kitchens, bathrooms, and floors, while specialized projects required professionals.
Meanwhile, about half of sellers made targeted pre-sale improvements to their previous home before putting it on the market in 2024. They tend to prioritize return-driven renovations, emphasizing visual appeal and interior updates that will increase curb appeal. They have increasingly aimed for higher prices and faster sales, with two-thirds completing projects in less than three weeks; about 75% met timing expectations, finishing projects in the expected timeline or quicker than expected.
Your home improvement product marketing teams have a highly interested audience in first-time homebuyers that they can target with relevant advertising marketing efforts — especially within the first year after a home purchase — using the findings from our 2024 Recent Home Buyer and Seller Report. To capture share of the recent movers customer base, home improvement product manufacturers and suppliers should aim to align product offerings and marketing efforts with demand from recent movers for kitchen, bathroom, and flooring upgrades. {CTA to HIRI Pricing Guide}
In 2024, home improvements remained largely motivated by discretionary factors, with personalization rising most since 2022. Most buyers — or about two-thirds — plan to stay in their current homes for more than a decade, and plan projects accordingly. Nearly half complete their home improvement projects on schedule. Our research also shows there’s been a significant rise in homeowners wanting to personalize their space. That was a motivating factor for 44% of projects in 2024, compared to 26% in 2022. This trend is likely due to trade offs made through tight market purchases and the intention for longer-term stays once prospective homeowners find a place to buy.
Your building product manufacturing and retailing teams should consider campaigns geared toward personalization, especially among older generations of homebuyers, as these customers are more inclined to invest in long-term customization projects.
For both homebuyers and home sellers, the materials most frequently purchased for their home improvement project include high-impact materials, like paints, hardware, and sealants, caulks, and other adhesives. In other product areas, we see greater divergence.
Homeowners predominantly purchased materials themselves, although sellers were nearly twice as likely as buyers to rely on contractors for procurement. When not relying on pros, homeowners heavily rely on department and discount stores and hardware stores However, as we witnessed in 2024, they’re increasingly purchasing their products and materials from warehouse clubs, specialty retailers, and hardware stores, a shift from 2022. For example, 39% of homeowners utilized warehouse clubs in 2022, jumping to 80% in 2024. On the other hand, home centers experienced a slight decline.
Homeowners continue relying upon cash and savings, as well as credit cards, to fund home improvement projects, both for previous and current homes. Additionally, there is an increasing usage of unsecured and other consumer credit sources, such as store credit cards and unsecured loans. In particular, Millennials are much more likely to utilize unsecured funding sources — including bank and store credit cards, unsecured loans, contractor-arranged financing, and deferred billing — than older homeowners.
For manufacturers and suppliers and financial stakeholders in housing and home improvement, these finding can inform your partnership and credit product strategies as HIRI’s study findings indicate consumers have become more willing to take on debt in various forms over the past 6 years.
Regardless of whether home improvement activity happens before a home sale or after (or some time in between), understanding home buyer and seller behaviors and motivations can help home improvement retailers and marketers better connect with those who are seeking their products and services.This study is part of the 40+ research projects the Home Improvement Research Institute conducts each year for its members. Not a member yet? You’re missing out on unlimited access to over a million dollars’ worth of home improvement market research. For full access to data from this survey and detailed information on all homebuyer demographics, join HIRI as a member today. Schedule a consultation to assess what HIRI membership would mean for your cross-functional teams.
HIRI members have exclusive access to ~$1M of annual research, which covers Channel, Product, Project, and Market Size activity for both Homeowners/DIYers and Contractors. HIRI is the best source of secondary home improvement information. To leverage HIRI data ensures your organization has a strong, foundational comprehension of the industry and dynamics impacting it.