Elder millennials are driving a hobby renaissance in 2026, but ‘funflation’ could ruin the party
Want to have some fun this fall? It’ll cost you. The Bank of America Institute has released a new report on the hobby economy, and it shows that the price of fun is going up. According to BoA card data, hobby spending increased in August by more than double the pace of overall transaction growth. In other words, consumers are dropping more cash on their hobbies, but their hobbies are also getting…
The Bank of America Institute's latest report on the hobby economy reveals that the cost of having fun is on the rise. August's hobby spending increased by more than double the overall transaction growth, indicating that consumers are spending more on their hobbies, but also that these hobbies are becoming increasingly expensive.
Currently, hobby culture is experiencing a resurgence, particularly among Gen Zers and millennials who are documenting their pursuit of "grannycore" skills such as knitting, gardening, scrapbooking, and sewing.
However, hobbyists should be prepared to spend extra for their interests as arts and crafts stores, hobby shops, and outdoor recreation retailers are driving this trend known as "funflation" by the BoA Institute. The mini hobby renaissance reflects a significant spike in hobby spending during the pandemic in early 2021, followed by a decrease in the following years.
Now, interest in hobbies is resurfacing, with August hobby spending up 7.9% year over year, compared to a 3.4% increase in overall transactions. During the pandemic, people may have splurged on hobbies due to social distancing, but the report suggests a potential shift towards less expensive leisure activities as after-tax wage growth has slowed and rising fuel costs have made travel less accessible.
Older millennials, followed closely by boomers and Gen Xers, spent the most per customer on hobbies, likely due to their tendency to have small children, according to the BoA Institute. Gen Z spent the least on hobbies, possibly due to a shift from more costly hobbies to affordable options like knitting, sewing, or baking (arts and crafts).
The types of investments varied by age range, with older millennials being the most likely to spend on outdoor recreation and arts and crafts, followed by Gen Zers in both categories. Gen Z also saw a 20% year-over-year increase in video game spending in August, after a substantial growth of more than 30% year-over-year in 2025.
Activities such as board games, crocheting, and hiking may be more budget-friendly than a vacation to Cancun, but they still come with a notable cost increase compared to 2025.
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