Top 5 Renovations Millennials Are Investing In (And Their Costs)
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Introduction
Millennials are no longer just renting—they’re buying homes and investing in renovations to make those homes reflect their lifestyles. This generation has different priorities compared to previous ones, focusing on sustainability, smart tech, and functionality rather than traditional homeownership aspirations.
So, what are the top renovations millennials are pouring money into? And what do these updates cost?
In this guide, we’ll break down the top 5 renovations millennials are investing in and provide you with a detailed cost breakdown for each one.
🏡 1. Kitchen Remodels: The Heart of the Home
Why It’s Popular:
For millennials, the kitchen is a social space—it’s where they cook, eat, entertain, and even work. Millennials are opting for updated kitchens with modern appliances, open layouts, and upgraded materials. These remodels not only enhance the aesthetics but also improve the functionality of the most-used room in the house.
Common Upgrades:
- New cabinets (soft-close drawers, open shelving)
- Granite or quartz countertops
- Energy-efficient appliances (smart refrigerators, induction stoves)
- Upgraded flooring (e.g., wood, tile)
- Smart home integrations (lighting, faucets, and temperature controls)
Average Cost:
The cost of a kitchen remodel varies based on size, style, and location, but here are some average estimates:
- Minor remodel: $12,000 - $20,000
- Mid-range remodel: $25,000 - $40,000
- High-end remodel: $50,000+
What Millennials Are Paying:
Millennials are leaning towards mid-range remodels, spending anywhere between $20,000 to $40,000 to upgrade their kitchens with quality materials and appliances.
🛁 2. Bathroom Remodels: Luxurious and Functional
Why It’s Popular:
Bathrooms are the next big area of focus for millennials, many of whom are creating spa-like retreats in their homes. Millennials want their bathrooms to feel luxurious and relaxing, with high-end features like freestanding tubs, large walk-in showers, and high-tech toilets.
Common Upgrades:
- Freestanding tubs or spa-style showers
- High-efficiency fixtures (low-flow toilets, water-saving showerheads)
- Upgraded vanities (quartz countertops, soft-close drawers)
- Smart mirrors with built-in lighting
- Energy-efficient lighting
- Heated floors
Average Cost:
A bathroom remodel can range widely depending on the level of renovation:
- Minor remodel: $5,000 - $15,000
- Mid-range remodel: $15,000 - $30,000
- High-end remodel: $30,000+
What Millennials Are Paying:
Most millennials opt for mid-range remodels, spending between $15,000 and $25,000 on their bathrooms to achieve a more upscale look and feel.
🏠 3. Smart Home Upgrades: Tech-Savvy and Energy-Efficient
Why It’s Popular:
Millennials are the first generation to fully embrace smart home technology. From security systems to energy management, these upgrades are designed to enhance convenience, comfort, and sustainability. Not only do smart homes offer convenience, but they can also save money on utilities in the long run.
Common Upgrades:
- Smart thermostats (Nest, Ecobee)
- Smart lighting systems (Philips Hue)
- Smart locks and security systems (Ring doorbell, smart cameras)
- Voice assistants (Alexa, Google Assistant)
- Smart appliances (washing machines, refrigerators)
- Automated window treatments (smart shades)
Average Cost:
Smart home upgrades can range from small, affordable tweaks to full-system installations:
- Basic system setup: $1,000 - $3,000
- Full home automation: $10,000+
What Millennials Are Paying:
Millennials are generally starting with basic systems like smart thermostats and security cameras, spending around $2,000 to $5,000 to make their homes tech-friendly. For full smart home automation, the cost can easily rise to $10,000 or more.
🌿 4. Energy-Efficient Upgrades: Saving Money and the Planet
Why It’s Popular:
Sustainability is a core value for many millennials, and they’re investing in energy-efficient upgrades to reduce their carbon footprint and save money on utilities. These eco-friendly renovations align with millennials’ environmental values while offering long-term financial savings.
Common Upgrades:
- Energy-efficient windows and doors
- Solar panels
- High-efficiency HVAC systems
- LED lighting
- Water-saving fixtures (low-flow showerheads, dual-flush toilets)
- Insulation upgrades (spray foam, attic insulation)
Average Cost:
Energy-efficient upgrades vary significantly depending on the specific installation:
- Windows and doors: $10,000 - $20,000
- Solar panels: $15,000 - $25,000
- HVAC upgrades: $4,000 - $10,000
- Water-saving fixtures: $1,000 - $2,000
What Millennials Are Paying:
While some millennials go all in with solar panel systems or new HVAC units, the average spend tends to be around $5,000 to $15,000 for energy-efficient upgrades. Solar installation, for example, could be a $20,000 investment but brings long-term savings.
💡 5. Open Concept Floor Plans: Modernizing the Layout
Why It’s Popular:
Millennials are gravitating toward open concept floor plans because they emphasize flow and connectivity. Open spaces make homes feel larger, brighter, and more functional for entertaining. This renovation is especially popular in older homes where walls can be knocked down to create more open areas.
Common Upgrades:
- Removing interior walls to create an open kitchen and living room
- Replacing walls with glass doors or windows for natural light
- Adding multi-functional spaces (e.g., home office areas, mudrooms)
- Kitchen islands or breakfast bars
- Open shelving instead of cabinets
Average Cost:
An open concept remodel can range based on how much structural work is involved:
- Minor renovations (knocking down a few walls): $5,000 - $15,000
- Major renovations (gutting and reworking entire floor plans): $20,000 - $50,000
What Millennials Are Paying:
For an open concept living space, millennials typically invest between $15,000 to $30,000, depending on the size of the project and whether new structural components or design elements are added.
💸 The Bottom Line: How Much Are Millennials Really Spending?
Millennials are investing significant amounts in their homes, particularly in areas that improve comfort, energy efficiency, and functionality. Here’s a quick summary of the typical price range for each renovation:
- Kitchen remodels: $20,000 - $40,000
- Bathroom remodels: $15,000 - $25,000
- Smart home upgrades: $2,000 - $5,000 (for basic setups)
- Energy-efficient upgrades: $5,000 - $15,000
- Open concept floor plans: $15,000 - $30,000
🛠️ Final Thoughts: How Millennials Are Changing the Remodeling Landscape
Millennials are investing in renovations that make life more efficient, sustainable, and functional. As this generation continues to prioritize modern designs, smart tech, and eco-friendly solutions, expect these trends to continue influencing the remodeling industry.
Contractors who understand millennials’ preferences and offer tailored solutions can position themselves to capture this growing market segment.
💡 Ready to cater to millennial homeowners? Try Estimero to estimate, plan, and execute the top remodels millennials are investing in.
Helpful Links:
- Estimero Kitchen & Bath Remodels
- Energy-Efficient Renovation Planning
- Smart Home Renovations: The Future of Homes
Need help estimating a millennial-inspired remodel?
Contact Estimero Support to get expert advice on budgeting and planning your next project!