Over the last decade, the housing market has changed drastically to meet demands in a dynamic social climate. The Home Improvement Research Institute (HIRI) teamed up with Trend Hunter to explore what the future of housing may look like in a world shaped by a growing passion for issues such as climate change, sustainability, and minimalism.
The Future of Housing Trend Report calls attention to three new trends in neighborhood design and sustainable living practices. From the emergence of eco-friendly materials and 3D-printed technology to designs focused on cultural inspiration and reversible architecture, the housing market should continue to evolve as the consumer mindset shifts.
Here’s a high-level breakdown of emerging trends and insights that may impact your business:
Architects, developers and local governments are proposing neighborhoods centered on community building and local businesses. These spaces are intended to be car-free, with all necessities reachable via a short walk or bike ride.
Insight: As urban centers expand in size and population, consumers are recognizing that their quality of life is suffering — whether that be due to alienation, affordability issues, lengthy commutes or pollution. As a result, many are moving away from city centers and turning to community-based neighborhoods. In doing so, these individuals gain a sense of belonging, because they can facilitate stronger connections with people nearby while also satisfying the need for convenience and cleaner air.
With sustainability as a top priority, architects and designers are embracing different eco-friendly concepts.
Insight: Contemporary consumers are wary of the impending consequences of climate change, and a large number are becoming increasingly aware that simply shifting their lifestyle and practicing ecological mindfulness are likely not enough. As a result, many are demanding that brands and creators take the environment into consideration. In doing so, these individuals feel more at ease and proud of their advocacy for a better future.
Building off of the desire for more sustainable living, the emergence of simple, more minimalist design emphasizes homeowners’ functions and needs. Home designs such as towable mini cabins and tiny homes allow for functionality while interior trends such as the Japandi aesthetic inspire pared-back inside spaces that pay homage to natural colors and materials.
Insight: Contemporary consumers in fast-paced urban centers are looking to balance the demands of their daily lifestyle with a comfortable home environment. Many are prioritizing minimalist designs and additional spaces that can optimize and elevate their living situation without compromising aesthetic appeal.
As society evolves, what matters in our homes evolves as well. Learn more about the future of housing by gaining full access to this Trend Hunter report, included with your HIRI membership.
The second half of 2020 saw the global smart-home market grow about 13% in revenue compared to 2019. Further, HIRI commissioned a report from global market intelligence firm Omdia on behalf of members that forecasts the global smart-home market will exceed $167 billion in 2025 (up from about $58.5 billion in 2020).
As the market continues to grow at breakneck speed, companies are racing to innovate home technology integrations, imagining what’s next in smart controls for lighting, energy efficiency and more.
Insight: The appeal of connected homes for consumers is that they’re able to streamline and organize day-to-day household tasks and routines. Between work, raising children, social lives and/or maintaining personal health and hobbies, consumers are increasingly turning to brands that make their daily activities feel more manageable.
However, consumers shopping for smart-home devices are not only shopping to improving their quality of life. In certain product categories, smart-home devices have quickly become an aid for the resale value of the home. This will matter more during shifts from a seller’s to buyer’s market and during a cooler housing market in general.
Product purchase incidence for outdoor living products doubled over a six-year period, from 17% in 2015 to 31% in 2021. Today, there are several reasons to believe this trend will continue.
Nearly 8 in 10 (78%) homeowners reported making outdoor home improvements to be able to stay in their house as they age.
Almost a quarter (73%) of homeowners said they make improvements to help them maintain a healthy home.
Insight: From a wellness perspective, people are increasingly aware of the benefits of spending time outdoors. From a practical standpoint, investing in well-designed home improvements for outdoor spaces can significantly increase the value of a home.
Whether driven by a desire to create a comfortable and functional space for living, entertaining and enjoying fresh air or by the prospect of creating a more valuable home, homeowners will continue improving their outdoor living spaces for years.
Brands can capitalize on this trend by offering a wide variety of outdoor products or by including outdoor design in their list of services.
According to HIRI research, homeowners report the need to repair or maintain the house as a primary reason for purchasing many home improvement products.
Examples of maintenance-free home improvement products include:
These products require minimal upkeep and are designed to last for many years without the need for painting, staining or other maintenance tasks.
Insight: Maintenance-free products can be a cost-effective solution in the long run. While they may be more expensive to purchase initially, they can save homeowners money on maintenance and replacement costs over time.
Brands offering maintenance-free home improvement products should market their offerings according to homeowner values such as convenience, sustainability and cost-effectiveness.
It is important to remember that as society evolves, what matters in consumers homes evolves as well. Learn more about the future of housing by accessing market trends and research included with your HIRI membership, or consider attending the upcoming HIRI Insights Summit.