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.”
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