Millennials Are Driving the Future of Home Spending, According to Angi's State of Home Spending Report
MWN-AI** Summary
According to Angi's 2025 State of Home Spending Report, Millennials have emerged as the leading force in home improvement spending, outpacing all other generations in terms of total home project expenditures. Despite not being the largest group of homeowners, Millennials are spending an average of $14,199 per household annually on home projects, significantly more than their predecessors. This trend is evident as 77% of surveyed Millennials are planning major renovations in the next five years, influenced largely by rising mortgage rates that encourage them to enhance their existing homes rather than relocate.
Angie Hicks, co-founder of Angi, highlighted that 74% of Millennials attribute their decision to invest in renovations rather than moving to current mortgage rates, contrasting sharply with only 47% of homeowners from all other generations. This shift is reshaping the home improvement landscape, as Millennials prioritize projects that enhance efficiency, durability, and design—a direct response to their unique challenges in the housing market.
While leading in spending, Millennials also confront various obstacles, particularly a shortage of skilled labor, which affects project timelines and costs. Nonetheless, their commitment to home improvements underscores their role as the "renovation generation." They focus on contemporary needs, integrating eco-friendly materials and technology upgrades into their projects.
Overall, home project spending in the U.S. rose to $12,472 on average in 2025, reflecting a 3.5% increase from the previous year, with Millennials significantly contributing to this uptick. As they continue to dominate home spending, Millennials are not just changing their own living spaces; they are redefining modern homeownership.
MWN-AI** Analysis
The Angi 2025 State of Home Spending Report has illuminated a pivotal trend: Millennials are at the forefront of home spending, actively shaping the future of home improvement projects. As this generation leads in expenditure per household, financial analysts should focus on the implications for businesses in the home services market.
Millennials, while not yet the largest demographic of homeowners, are opting to invest in their current residences rather than relocating. This shift can be largely attributed to elevated mortgage rates and an inherent desire for personalization and sustainability in home investments. Analysts should advise on focusing marketing efforts and product offerings towards projects that align with Millennial preferences, such as eco-friendly materials and smart home technologies.
Moreover, the report highlights a challenge—the difficulty Millennials face in finding skilled labor, which can lead to delays and increased costs. This presents a strategic opportunity for home service companies to enhance their visibility among Millennial homeowners by positioning skilled tradespeople as a solution to these challenges. Companies that streamline the hiring process for DIY homeowners or offer competitive pricing will likely benefit from increased engagement and brand loyalty from this demographic.
Furthermore, with Millennials leading the way in maintenance and emergency spending, businesses should also pivot towards offering maintenance packages or emergency repair services tailored to these homeowners, reinforcing long-term relationships through continued support.
In summary, the data shows a substantial shift in home improvement spending dynamics driven by Millennials. Companies willing to adapt their strategies to meet the unique needs and challenges faced by this generation will be well-positioned to thrive in this evolving market landscape. As the renovation generation continues to shape the industry, focusing on accessibility, sustainability, and skilled labor solutions will be paramount for success.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
DENVER, Jan. 20, 2026 (GLOBE NEWSWIRE) -- Angi’s 2025 State of Home Spending Report reveals that Millennials have become the primary drivers of today’s home projects economy, generating the highest total home spending per household of any generation. While Millennials are not yet the largest group of homeowners, they outspend all other generations on a per-household basis, signaling their growing influence on how Americans invest in their homes.
Their momentum shows no signs of slowing: 77% of surveyed Millennials say they plan to take on a major home project in the next five years, the highest of any generation.
After several years of elevated mortgage rates and a later entry into homeownership, Millennials are approaching their homes differently than generations before them. Rather than moving, many are choosing to invest where they are.
“We’re seeing Millennials renovate rather than relocate,” said Angie Hicks, co-founder of Angi. “74% said mortgage rates are influencing them to improve their current home instead of moving, compared to just 47% across all generations. This Millennial trend is reshaping the home improvement market.”
Despite leading total home spending, Millennials face distinct challenges. 70% report difficulty finding skilled labor, often resulting in project delays or higher costs. Entering homeownership later, amid higher labor costs and housing expenses, has pushed Millennials to prioritize projects that improve livability, efficiency, and durability.
“As Millennials grow their share of the home improvement market, we expect projects to increasingly reflect their priorities,” Hicks said. “That includes a strong interest in design-forward updates, eco-conscious materials, and technology upgrades.”
Together, these behaviors position Millennials as a true “renovation generation” – not just because they spend more, but because of how they are redefining what modern homeownership looks like under today’s economic conditions.
Millennials Led Overall Home Project Spending in 2025
While older generations continued to spend more on improvements alone, Millennials led overall home project spending by investing heavily in maintenance and emergency repairs.
- Silent Generation: Average annual home project spending totaled $12,007, including the second-highest improvement spend ($10,085) and the lowest emergency spend ($140).
- Baby Boomers: Spent an average of $12,454 annually and continued to lead improvement spending at $10,423.
- Generation X: Averaged $12,956 in total spending, the second-highest overall.
- Millennials: Led all generations with an average total spend of $14,199, including the highest maintenance ($2,601) and emergency ($1,519) spending.
- Generation Z: Spent the least overall at $10,283, but ranked second in both maintenance ($2,261) and emergency ($1,400) spending.
Home Project Spending Continued to Rise
In 2025, U.S. homeowners spent an average of $12,472 on home projects, a 3.5% increase from $12,050 in 2024. Households also completed more projects, rising from an average of nine projects in 2024 to ten in 2025.
- Home Improvements: Average improvement spending dipped slightly from $9,322 in 2024 to $9,288 in 2025.
- Home Maintenance: Spending rose to $2,041 per household, up from $1,750 in 2024.
- Emergency Repairs: Average emergency spending increased to $1,143, compared to $978 the previous year.
To explore the full findings from Angi’s State of Home Spending Report, download the report here.
About Angi Inc.
Angi (NASDAQ: ANGI) helps homeowners get home projects done well and helps home service professionals grow their businesses. We started in 1995 with a simple goal to help people find skilled local home pros from plumbers and electricians to remodelers and landscapers to get their jobs done well. Now 30 years later, we've evolved to help people with everything from finding, booking and hiring a skilled pro, to researching costs and finding project inspiration. Homeowners have turned to Angi, and our vast network of skilled home pros, for help with more than 300 million projects.
Contact Information
Angi Corporate Communications
Jordan Long
(303) 963-8352
FAQ**
How is Angi Inc. (NASDAQ: ANGI) adapting its services to cater to the unique needs of Millennials, who are now leading home project spending with an average of $14,199 per household in 2025?
What strategies are being implemented by Angi Inc. (NASDAQ: ANGI) to address the reported 70% of Millennials facing challenges in finding skilled labor for their home projects?
Given Millennials' preference for renovation over relocation, how is Angi Inc. (NASDAQ: ANGI) positioning itself to support long-term home improvement investments among this generation?
As Millennials prioritize eco-conscious materials and technology upgrades, how is Angi Inc. (NASDAQ: ANGI) evolving its platform to align with these contemporary home improvement trends?
**MWN-AI FAQ is based on asking OpenAI questions about Angi Inc. (NASDAQ: ANGI).
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