Younger generations are leading the push in home purchasing and remodeling projects. They are also leaders in online purchases of building materials. How does this behavior compare to millennials and older generations? See our infographic below to deep dive into the insights.
Since the start of the COVID-19 pandemic in 2020, “home,” for many, has doubled as an office, school, movie theater, gym and more. The bottom line? Homeowners are spending more time at home, undoubtedly changing how remodeling projects are prioritized.
The housing market is hot — and its reach is broad. Current homebuyers hail from four different generations, each of which follows different purchasing patterns. New research from the Home Improvement Research Institute explores these patterns and their drivers, creating a valuable resource that can help inform your decisions.
So, what are the homebuyer generations, and how do their unique characteristics affect the housing market?
Having data on home improvement and insights on customer behavior can help professionals navigate a shifting and unpredictable economy.
The Home Improvement Research Institute (HIRI) gives its members research, survey results and insights on the home improvement industry so that retailers, manufacturers and other organizations can better understand the consumers that they serve.
The 2020 HIRI Product Purchase Track Survey (PPTS) is now available to members. The survey looks at trends in home improvement product and service purchases based on data provided biennially from homeowners across the United States.
2020 has been a challenging year across all industries, and home improvement has been no exception. With so many homeowners at home, the demand for home improvement products and services exploded, while the supply chain struggled to keep up with that demand.
Let’s look at the top findings from HIRI’s home improvement industry research this year.
A Year of Home Buying
Home sales have been a hot topic throughout much of the year. Aside from the short drop due to COVID-19 lockdowns this spring, home purchasing has exploded, showing growth rates more than 20% in recent months compared to last year. While this explosive growth has larger implications overall, like increasing home prices and homeownership rates and decreasing housing inventory, it also has a longer tail for those within the home improvement and remodeling industry. As shown in HIRI’s Consumer Project Planning survey and echoed by MetroSight’s Issi Romem at HIRI’s recent Virtual Summit, the time period following a home purchase is filled with a flurry of renovation activity by the new home owners.
The impacts of the current pandemic are widespread, and the construction industry (and its economy) is no stranger to its effects. The impact of COVID-19 on home improvement projects has become a challenge for many manufacturers and retailers.
A few purchasing trends have changed significantly, especially with DIY projects and research around home improvement products. If you’re selling to DIYers and home improvement contractors, there are a few things to note when it comes to selling your product during the current COVID crisis.
Recently, the Home Improvement Research Institute partnered with The Farnsworth Group to track the impact of COVID-19 on DIY home improvement activity.
Last week, partnered with The Farnsworth Group, we released the first data from our new weekly COVID-19 impact tracker. This tracker shows COVID-19’s impact on our industry.
We will be fielding a survey weekly to 1,000 DIYers and hundreds of Contractors to get a consistent pulse on the buying behaviors and project statuses broken down by region and generation.
More than 90% of home improvement consumers report researching online ahead of a home improvement purchase, with 40% citing online research as “extremely important” to their final decision. While online purchases are growing rapidly, there is still a clear divide between products consumers will likely buy online and those they consider unlikely to purchase online. Which products are shoppers buying online, and how can you increase your online sales? Check out this infographic for data to help you understand online purchasing habits and grow your business.
Online consumer purchasing habits can’t be evaluated without mentioning the mammoth in room: Amazon. The online retailer has fundamentally changed consumer expectations about how much shipping should cost (free) and how long it should take to arrive after purchase (less than one week). Perhaps most importantly, 33% of consumers indicate Amazon has better prices, helping the retailer hold onto its top spot in the online home improvement products market.
How do homeowners use the products they purchase? The answer sheds light on how they are planning to improve their home — and what they need and want from you.
Thriving omnichannel businesses don’t just sell through multiple sales channels — they create a continuous experience for consumers. From brick-and-mortar stores to online-only storefronts, print media and social media, omnichannel businesses make it easy for customers to find and interact with them and their products.
How prevalent is homeownership from generation to generation? Will this be the year millennials close the gap? What are the biggest motivators for home improvement projects? How long do homeowners from different generations think about a project before taking the plunge? These are just some of the generational insights you can glean from the newest Generational Age Group Analysis. This original, proprietary research provides a comprehensive picture of generational attitudes and behaviors, from millennials to matures.
When it comes to learning about the home improvement projects new homeowners — especially first-time buyers — undertake and the projects completed or planned for newly purchased homes, there’s no better resource than the Home Improvement Research Institute’s (HIRI) Recent Home Buyers Study. Conducted every other year since 2004, the study tracks recent homebuyer behavior regarding home improvement projects.
So, who are these buyers? First-time homebuyers (36 percent of buyers within the past year) tend to buy older, less expensive homes. They are also more likely to be millennial-aged females with lower incomes. Lower incomes translate into less buying power, which translates into more price constraints and offers a valid reason why older homes are often a more realistic option. Not to mention that low credit scores and hefty down payments can also be problematic for first-time buyers.
Learn more about the differences between homebuyers and their motivations, challenges and home improvement plans when you join HIRI. As a member, you’ll have unlimited access to this study and other in-depth, exclusive research, peer-to-peer networking, event registration discounts and more. JOIN NOW
When does your house start to feel like home? For many, it's not when you put your final signature on the stack of paperwork that never seems to end. Rather, a house starts to feel like home when you put your own personal touches on it. The time spent around this is often filled with a flurry of activities around the house. HIRI’s newly released Recent Home Buyer Study examines those who have purchased a home within the last year and digs deep into what type of work they have done and plan to do to their house.
HIRI/IHS Markit forecast expects 6.3% growth in home improvement products market in 2018 after a strong 7.3% in 2017.
From traditional advertising in magazines and on the radio to modern social media channels, blogs, and websites, consumers turn to the media for many home improvement-related needs. Like many other aspects of society, media has changed over the years, transitioning from newspapers and radio to social media and the internet.
Word-of-mouth recommendations from friends and family were the top source for project planning information in 2011. Websites eclipsed friends and family sources with a subtle 3 percent growth between 2011 and 2017, making the internet the top source for project planning information. But when it comes time to gather inspiration for projects, nearly 30 percent of consumers are still more likely to visit a home improvement retailers’ store for ideas compared to 18 percent of consumers who would browse the website instead.
Todd Tomalak, Senior Vice President of Research at John Burns Real Estate Consulting took time out to talk about the future of smart home technology and tell us how builders are utilizing "smart home" products in their homes. Smart home tech features are changing at an incredible pace, and homebuilders are taking note.
John Burns Real Estate Consulting is the industry leader for housing research and is HIRI’s preferred partner for new construction insights and works hand-in-hand with most of the major builders, developers, product manufacturers, and investors as they plan for their future.
