The home improvement market is showing promising signs of life. The latest American Express Spending & Saving Tracker survey indicates that homeowners plan to tackle projects ranging from new flooring to redoing a room this year. But don’t expect consumers to spend like they did previously. Instead, “consumers are following through on their previously stated intentions to exercise more financial discipline in 2010 as it relates to home improvement.”
A spending snapshot of planned spending breaks out across demographic sectors as follows:
- General population: $6,200
- Young professionals: $6,000
- Young affluents: $11,500
The element of fiscal conservatism is apparent in how homeowners plan to pay for these improvements:
- Cash, check or savings: 68%
- If using a credit card, plan to pay in full: 28%
- Tax refund: 10%
And while recent home improvement projects were all about customizing personal space, the goals of today’s consumers have changed:
- Project is necessary and can no longer be put off: 19%
- Plan to increase home’s value: 11%
- Preparing to sell the home: 5%
Thriftiness may be a new vocabulary word for many homeowners but they are not ready to embark on a project themselves. Nearly half (47%) plan to call in a professional. The number skews slightly higher for affluent consumers (54%) than young professionals (36%).
Home improvement retailers and service professionals should take note of these numbers and begin marketing campaigns to increase sales.
[Source: Majority of Homeowners Plan to Invest in Home Improvements in 2010, Spending an Average of $6,200 According to American Express Spending & Saving Tracker. American Express. 20 Apr. 2010. Web. 26 Apr. 2010]