Home Improvement Brands Must Focus on Millennial Homeowners

Prepared by Brunner, a 2024 Strategic Partner of HIRI. Learn more about HIRI's Strategic Partners.

In the ever-evolving landscape of residential construction and home improvement, one demographic has become a pivotal force: millennials. Born between 1981 and 1995, millennials are not only the largest generation in the U.S. labor force but are also rapidly becoming the dominant generation of homeowners.

For home improvement brands, understanding and catering to this influential cohort is no longer optional ' it's essential for sustained success in the marketplace.

Millennial Surge in Homeownership

Millennials are making significant strides in homeownership. As of 2022, over 50% of millennials owned homes, marking a substantial increase from previous years, according to the U.S. Census Bureau. In 2023/2024, millennials accounted for 28% of home buyers, making them the largest group of home buyers, data from the National Association of Realtors shows.

This generation's entry into the housing market has been driven by factors including low interest rates during 2020 to early 2022 and the rise of remote work, which has allowed many to move to more affordable areas. Despite more recent challenges such as rising home prices and higher interest rates, millennials continue to pursue homeownership with determination.

Millennial Surge in the Workplace

Millennials are not just reshaping the housing market; they are also transforming the workplace. As of 2020, millennials made up 35% of the U.S. labor force, surpassing both Generation X and baby boomers, according to Purdue Global. Projections indicate millennials will constitute 75% of the global workforce by 2025.

Millennials are known for their tech-savviness, interconnectedness, sense of individualism, desire for purpose, and multiculturalism, according to researcher Jean M. Twenge, Ph.D. Those traits drive what they look for when working with vendors, including home improvement professionals and contractors.

What Matters to and Motivates Millennials

Millennials are the first generation to grow up empowered by technology. They blur the lines of where and how to learn, communicate, and engage with others. For example, millennials are likely to use the same social media platform to learn woodworking as Microsoft Word.

They grew up more connected and empowered by social media than any previous generation. They have seen movements started by a single post ' real beauty cosmetic movement, #metoo, BLM ' as they experience the real lives and workplaces of people from around the world.

Millennials were educated to believe they have the power to drive change and to mistrust the institutions of the past, such as financial institutions and mainstream media. As a result, they expect more from brands and each interaction they have with you.

Engaging Millennials through Push-Pull Marketing

To engage millennials effectively, home construction and improvement brands should adopt an omni-channel, push-pull marketing strategy that attracts millennials (pull) and reaches out to them (push). Given the interconnected nature of millennials, this approach works for marketing to consumers and businesses.

Here are the top three considerations for implementing a successful millennial push-pull marketing strategy:

Brand Purpose: Millennials gravitate toward brands with a clear purpose and stand for something more than profits and sales. A OnePoll survey found that 80% of millennials are likely to make a purchase based on the brand's mission or purpose. When Brunner developed a push-pull strategy for YellaWood, maker of pressure treated pine, we developed the purpose of creating five-star backyards. Read the case study.

Digital Presence: Millennials are digital natives. Home improvement brands need a strong online experience, including a user-friendly website, active social media channels, and content that's engaging and relevant. For The Home Depot Rental, we used SEO and digital marketing to attract millennial consumers and contractors. Read the case study.

Personal Empowerment: Millennials are the first generation to grow up in a fully digital ecosystem. They gravitate to brands that empower their ability to do as much as 75% of their research independently. For ZEP, we worked with influencers to create a library of how-to product videos. Read the case study.

Looking Ahead: Gen Z on the Horizon

While marketing to millennials is crucial now, it's also important to establish marketing standards in preparation for the next wave of consumers: Generation Z. Born between 1996 and 2012, Gen Z is entering the workforce and will soon follow millennials into the housing market. Everything millennials demand from your brand will be intensified by Gen Z.

Interesting fact: By 2030, Gen Z is expected to make up 30% of the global workforce. Brands will need to do more to win with this smaller demographic, which will drive the housing market as baby boomers age out.

Building a Millennial-Focused Future

To stay competitive and relevant, home construction and improvement brands must prioritize millennials as a critical audience. By adopting a millennial push-pull strategy and focusing on brand purpose, presence, and personal empowerment, home improvement brands can effectively engage this powerful demographic. And as Gen Z follows closely behind, knowing how to win with millennials today will ensure continued success in the years to come.

To learn more, please join us for our Oct. 17, 2024 HIRI webinar, 'The Millennial Home Invasion: Is Your Brand Ready For This Vital Audience?' Learn more and register.

About Brunner

Brun_ner, a 2024 strategic partner of HIRI and a sponsor of the HIRI Summit, is a lead_ing inde_pen_dent inte_grat_ed mar_ket_ing agency that's proud to have Good Peo_ple, Cre_at_ing Great Work for Our Clients. Brun_ner sim_pli_fies the com_plex_i_ties of mar_ket_ing by lever_ag_ing data insights to devel_op cre_ative solu_tions for clients' mar_ket_ing chal_lenges. Brunner's client port_fo_lio includes notable nation_al brands like The Home Depot Rental, Great South_ern Wood Pre_serv_ing, Mit_subishi North Amer_i_ca, Owens Corn_ing, and Rin_nai, among oth_ers. Brun_ner is head_quar_tered in Pitts_burgh, PA, with addi_tion_al offices in Atlanta, GA.