Angi Inc., a leading platform for home services, unveiled its 2025 State of Home Spending Report on January 20, 2026, revealing that Millennials are emerging as the primary drivers of the home projects economy. Although not yet the largest group of homeowners, Millennials are outspending all other generations on a per-household basis, underscoring their increasing influence on home investments across the United States.

2. Key Findings

Millennial Momentum

The report highlights that a remarkable 77% of surveyed Millennials plan to undertake a major home project in the next five years, the highest among all generations. This enthusiasm signals a significant shift in the home improvement landscape, where Millennials are choosing to invest in their current homes rather than relocating, a trend largely influenced by elevated mortgage rates.

Angie Hicks, co-founder of Angi, stated, “We’re seeing Millennials renovate rather than relocate. 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.”

Challenges Faced by Millennials

Despite leading in home spending, Millennials encounter distinct challenges. The report indicated that 70% of Millennials experience difficulties in finding skilled labor, leading to project delays and increased costs. Their later entry into homeownership, coupled with rising labor costs and housing expenses, has prompted them to prioritize projects that enhance livability, efficiency, and durability in their homes.

Hicks noted, “As Millennials grow their share of the home improvement market, we expect projects to increasingly reflect their priorities, including a strong interest in design-forward updates, eco-conscious materials, and technology upgrades.”

3. Spending Patterns Among Generations

Overview of Home Project Spending

In 2025, U.S. homeowners spent an average of $12,472 on home projects, marking a 3.5% increase from the previous year’s average of $12,050. Households also completed more projects, rising from an average of nine projects in 2024 to ten in 2025.

Home Improvements: Average improvement spending slightly dipped from $9,322 in 2024 to $9,288 in 2025.

Home Maintenance: Spending on maintenance rose to $2,041 per household, up from $1,750 the prior year.

Emergency Repairs: Average spending on emergency repairs increased to $1,143, compared to $978 in 2024.

Generational Spending Breakdown

The report provides a breakdown of average annual home project spending by generation:

Millennials: Led with an average total spend of $14,199, including the highest maintenance spend of $2,601 and emergency spending of $1,519.

Generation X: Averaged $12,956 in total spending, coming in second.

Baby Boomers: Spent an average of $12,454, leading in improvement spending at $10,423.

Silent Generation: Totaled $12,007 in home project spending, with the second-highest improvement spend of $10,085 but the lowest emergency spend of $140.

Generation Z: Spent the least overall at $10,283, but ranked second in maintenance and emergency spending.

4. The Rise of the Renovation Generation

Angi's report positions Millennials as the "renovation generation." This designation reflects not only their spending power but also the unique priorities shaping modern homeownership. As this demographic continues to assert its influence, the home improvement market is likely to evolve in response to their preferences for sustainable and technologically advanced home features.

5. Conclusion

Angi’s 2025 State of Home Spending Report provides critical insights into the changing dynamics of home investment, particularly the pivotal role Millennials are playing. As they navigate economic challenges and reshape their homes, it is clear that their impact on the market will continue to grow, establishing new trends and setting the tone for future home improvement projects in America.

Original press release