The 3 Homeowner Groups You Need to Target

Residential remodeling continues to be a growing sector of the housing market. Consumer interest is high, owners are investing in their homes, and market conditions continue to drive demand for home improvement. Remodeling firms have the opportunity to achieve gains well into the next decade, but those opportunities will be realized by business leaders who best understand the market.

Last year, 23% of owner-occupied homes (about 20 million households) underwent some kind of remodeling project, according to the National Association of Home Builders. Several factors are helping to sustain demand. Households remain locked into low mortgage rates, many people are living in older homes that require repairs, and owners are investing in improvements that will allow them to age in place.

As a business owner, I know you are not simply aiming to “do well.” You want to lead the pack, so understanding your customer base is fundamental. One thing I’ve learned from running my business and from the NAHB is that defining your prospects isn’t always intuitive. Many professionals assume everyone is their target customer. That is not the case. NAHB market analysis reveals that remodeling demand is largely driven by three groups, and remodelers who tailor their services to these segments will lead in the future.

First-time Buyers

Homeowners aged 35 to 44 is an important group because it’s largely first-time homebuyers (the median age of first-time buyers is 38) who overwhelmingly purchase older homes. Nearly half (47%) of existing homes today were built before 1980, according to NAHB, meaning new owners are stepping into properties that need immediate upgrades.

In 2024, the same household segment reported the highest average remodeling spending ($42,000) of all age groups and accounted for 21% of total remodeling spending. The group, which represents nearly 3.7 million households, likely will remodel more than once, and they are forming relationships now with remodelers they’re likely to call on in the future. If you overlook the under‑45 population, you’re missing a customer who is ready to invest time and again.

Pre-retirement Projects

Homeowners aged 55 to 64 are the next major market force. They often are in their peak earning years and many are empty nesters preparing for retirement, so their motivations for remodeling are entirely different from younger households. Many are undertaking long-delayed projects (kitchens, primary bedrooms) or planning ahead by investing in aging‑in‑place improvements.

This group reported the second highest average remodeling spending in 2024 ($40,000) and accounted for nearly 26% of overall remodeling expenditures. For remodelers, this is a motivated customer base with both the equity and necessity to invest in meaningful upgrades.

Caring for Mom and Dad 

Multigenerational families account for more than one million households nationwide and made up 6% of total remodeling spending in 2024. Whether parents are moving in with their children, a grandparent joins the home, or adult children return, these families often need additional bedrooms or accessibility upgrades. It’s a smaller market but still worth pursuing.

When looking at customers by generation, Baby Boomers accounted for $254 billion in remodeling spending in 2024, representing 38%) of all remodeling expenditures. This group is the largest generation and backed by increased equity from long-term homeownership, which they can use to fund renovation projects.

This data reinforces why it’s so important to know who your customers are and which ones to target now and in the future. As an NAHB member, you have access to this type of insights, from the remodeling economic analysis to the Cost of Doing Business Survey, so make sure you’re a part of this group. Businesses that know their customers today will be the ones leading the industry tomorrow.