As Home-Ownership Increases, So Will Home Improvement and DIY
As more consumers feel confident, 2014 is expected to be a big year for new homes and do-it-yourself projects. Seller optimism is at a four-year high, with 65% saying they're confident they'll get their asking price. That's a 25% increase since the depth of the recession years in 2010, according to the American Express Spending & Saving Tracker.
“All of the costs associated with moving can really add up, but more consumers are feeling confident that they can afford to put down new roots,” said David Rabkin, SVP of Consumer Lending Products for American Express. “With more people looking to purchase a home this year instead of rent, and with seller confidence on the rise, it will create an interesting push and pull as buyers and sellers negotiate.”
This year, 16% of those surveyed are planning to move, which marks a significant difference from 10% in 2012. Among those looking for a change of scenery, buying is outpacing renting again, with over 17 million planning to purchase a home, condo or co-op (46%, up from 43% in 2013). Meanwhile, 16 million are looking to rent, comprising 44% of those surveyed (down from 47% last year).
HOME IMPROVEMENT INCREASES
Within this increasingly mobile environment, a large amount of homeowners (73%) are planning home improvement projects in 2014, spending an average of $4,000. More Americans — 72%, to be exact — are warming up to the DIY ethos, up from 66% in 2010.
While this is a boon for DIY sales, contractors might see business waning, given that 15% plan to hire a professional (compared to 22% in 2010).
AudienceSCAN data is available as part of a subscription to Ad-ology PRO. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.[Source: "American Express Spending & Saving Tracker." American Express. Mar. 2014. Web. 20 Mar. 2014.]