Home Buyer Trends

Understanding consumer decision-making in home purchases involves analyzing the various stages that buyers typically go through and the mix of financial, emotional, and market-driven factors that influence their choices. The stages they generally go through when purchasing a new home include need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Additionally, for buyers, home improve­ments are often nec­es­sary to align a new prop­er­ty with their needs and pref­er­ences. Some buy­ers plan ren­o­va­tions before mov­ing in, while oth­ers tack­le projects over time, address­ing func­tion­al upgrades, aes­thet­ic changes, or unex­pect­ed repairs.

The Home Improvement Research Institute's Recent Home Buyers and Sellers Report exam­ines the types of improve­ments home­own­ers make before sell­ing and after buy­ing, explor­ing spend­ing trends, project pri­or­i­ties, and the role of con­trac­tors in the process. This data covers the key factors influencing home buying and selling decisions, highlighting market dynamics and homeowner priorities, and also identifies trends in pre-sale and post-purchase home improvement activities, including project types, spending levels, and contractor involvement. 

New homebuyers prioritize discretionary home upgrades, focusing on kitchens, bathrooms, bedrooms, and outdoor spaces. They often opt for painting and flooring over full remodels, according to the Home Improvement Research Institute's Recent Home Buyers and Sellers Report.

Specialized projects like solar, pools, and whole-home systems demand higher costs and professional expertise. In general, a majority of new homebuyers complete lesser-skilled projects primarily DIY.

About two-thirds of homebuyers plan to stay in their current homes for more than a decade, and most projects complete some type of home upgrade within a month, largely adhering to schedule. The primary reasons why they decide to have work done on their home include beautifying the home, personalizing the space, freshening up the space, increasing home value, and replacing worn-out materials. 

The home improvement projects that give the best return for sellers include kitchen, bathroom, and aesthetic upgrades.

The Home Improvement Research Institute's Recent Home Buyers and Sellers Report found that about half of sellers renovate their home before listing it. Painting and flooring updates are also common, while some sellers invested in exterior improvements, including work on their patio, deck, or balcony; yard, garden, and landscape activities; and projects on exterior detached structures.

When sellers took on exterior envelope projects, these projects tended to be more extensive than those undertaken in their current homes. Professionals largely complete specialized home improvements, especially among sellers.

In general, home sellers increasingly aim for higher price and faster sales, with two-thirds completing projects in under three weeks, largely meeting timing expectations. HIRI's research provides detailed data on trends in pre-sale and post-pur­chase home improve­ment activ­i­ties, includ­ing project types, spend­ing lev­els, and con­trac­tor involvement.