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Why Millennial Homeowners Are Abandoning Resale Value in Favor of Joy
Buying a home is one of the most important purchases you can make in your lifetime. However, unlike cars or technology that depreciate with age, your home has the potential to increase in value while you live in it—in fact, the phrase "resale value" has become a buzzword that realtors, homeowners, and potential buyers are obsessed with. It has even gone on to influence design trends and renovation styles in recent decades. Black kitchen hardware, neutral grey color palettes, and marble tile are all examples of design elements that can boost your home’s value when it comes time to sell. But these features, while typically thought of as universally appealing, aren’t the draw they once were. Instead, homeowners are prioritizing personality and joy in their homes (and the homes they’re looking to buy) in place of resale value. According to a recent Thumbtack Survey, 76 percent of homeowners are now designing their spaces just for themselves, not for future buyers or market appeal. Related StoriesLisa Petrole A joy-filled children’s bathroom by designer Hilary Walker, for Magnolia’s Director of Styling, Ashley Maddox. Tour the entire home here.“When asked what led them to put happiness ahead of return on investment, homeowners expressed a range of attitudes," says Morgan Olsen, Senior Brand Manager at Thumbtack. "About one-third (32 percent) plan to stay in their home for the long haul, while nearly as many said that they want to simply enjoy their space, or that they prioritize joy because they spend so much time at home (25 percent each)." The common theme? A home is an experience, not just an asset.Beyond real estate, interior designers are also seeing a shift in the kind of asks clients are making. “I’m happy to see clients embracing color and pattern more over the past few years," says designer Avery Cox. "There has been less focus on resale value and more on designing for the individual. This allows clients to take the pressure off of making choices for anyone other than themselves, which makes room for much more play.”63 percent of homeowners who are currently looking to sell their homes are still prioritizing projects that bring joy to their lives rather than projects that attract future buyers.This desire for a personality-driven home is reflected in consumer behavior, as well. Thumbtack reports that 31 percent of homeowners are planning to spend over $10,000 on home projects this year. The top "joy-first" renovation projects include adding outdoor swimming pools, home gyms, built-in bookcases, and craft or hobby rooms. Requests for hot tubs are even up a whopping 135 percent. Jacob SnavelyTo make good use of the oft-wasted space under a stairwell, designer Tina Ramchandani installed a wine cellar for an entertaining-loving family. Tour the entire home here.The reality is that not every home project will deliver a return on investment in full. An upgraded kitchen or bathroom will likely be much more valuable when it comes time to sell your home than an ultra-personalized game room or movie theater, but every family has a different wish list for their dream home. That being said, over 40 percent of millennials are willing to lose money on a renovation if they know it’ll make them happier. Of course, it’s always smart to consider ROI when making home renovations but, as this survey shows, you shouldn't sacrifice your style or your personal happiness to please a hypothetical potential home buyer. Follow House Beautiful on Instagram and TikTok.
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