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THE
LIST
RIPPLE EFFECT
Moving to a new home is good for everyone
Buyers of new and existing homes have a disproportionately large
impact on the home improvement market and the many businesses that
feed off it.
The Home Improvement Research Institute (HIRI), an authority on
trends and economic forecasting for the home improvement industry,
announced the findings of a recent study on America’s housing
industry at the 2006 National Hardware Show in Las Vegas, NV, in
May.
Among its findings is that recent movers account for a higher average
in spending levels for home projects. Homeowners who have lived
in their homes for 0-2 years spend an average of $2,300 yearly on
their homes, while those living in their homes more than 10 years
spend $1,700 annually.
The proprietary study, which was conducted in March 2006, examines
the behavior of approximately 600 recent purchasers of new homes
and 600 purchasers of existing homes in terms of what home improvement
projects they are undertaking, what motivates these activities,
where they buy the products needed to complete these projects and
where they go to get information on these projects.
“The first step in capturing a significant portion of this
lucrative market segment is to fully understand the customer,”
said Fred Miller, HIRI managing director. “Clearly, those
that do the best job of serving this market will be very successful.”
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Economic Impact of Home Projects: |
• Average cost for home projects = $2,576
• “House appeal” is the leading motivator
for doing home projects.
• 66 percent of new homeowners do at least one project
to their new homes.
• 57 percent of respondents plan to do at least one project
in the next year or two.
• Almost half of those who sell their old homes do projects
to ready it for sale. 61 percent of these are done prior to
listing. Kitchens, baths and bedrooms are the most popular.
• The primary goal for doing a project is to increase
the sales appeal of the house.
• Buyers of new homes are more likely to use a professional
for work on their current homes.
• The motivation to hire a professional focuses on the
size of the job and making sure the project comes out right.
Source: Home Improvement Research Institute, March 2006 |
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