A deep dive into the generation gap

It's time to stop thinking of millennials as kids.

In four years, the oldest millennials are going to celebrate their 40th birthdays. And one researcher says the adult millennial demographic is an area that shouts for attention from marketers -- particularly home improvement industry marketers.

Speaking here at the Home Improvement Research Institute's Fall Conference, Sarah Catlett, senior VP of the Futures Company, pointed to stats and trends that show adult millennials are fueling the economic engine. Part of their power is the spending potential of this demographic -- a median household income of $72,000 is slightly higher than that of Gen Xers. Another big part, she said, is about attitude.

"They are unafraid; they are open to taking more risks in today's marketplace," she said. "They're trendsetters."

And they're brand-centric -- 61% believe the brands you buy say a lot about the type of person you are.

So what issues can home improvement brands capitalize on to take advantage of this opportunity? Catlett's research includes several items. Environmental friendliness, social justice, buying local, community mindedness -- these are all themes that resonate more with millennials than other groups.

"Millennials' values survived the downturn intact -- and provide a clear way in," she said.

Three key adult generations in today's marketplace:

(Generation, age range, population)

• Baby Boomers, 51-69, 73 million

• Gen Xers, 37-50, 58 million

• Millennials, 19-36, 79 million

Adult millennials are the most attractive, ready-to-spend segment in the marketplace, she repeated -- despite concerns over student debt.

The generational study takes place against a backdrop of generally improving economic conditions, including increasing wages and climbing consumer confidence -- at the highest point (98.1) since 2004. But it's no time for marketers to let up. On the contrary, now is the time to "fan the flames," says Catlett.

This is true even when considering the "huge issue" of student debt, which affects younger millennials more than older millennials, she said.

It is a huge issue, even more for the younger millennials.

Catlett and the Futures Company's research kicked off a series of presentations on home improvement trends and opportunities. For more information, visit HIRI.org.