Painting, flooring and landscaping top list of projects within first year of
home purchase
LAS VEGAS, May 10 /PRNewswire/ -- Proving for the first time what
conventional wisdom has long held, a new study finds that a majority of
homeowners make improvements to their homes within the first year of purchase.
Many consumers also make improvements to their previous homes to prepare them
for sale.
Kitchens, bathrooms and living rooms are the most likely interior spaces
to be improved in both newly-built and existing homes. Owners of newly-built
homes are also likely to do landscaping projects.
The report, released at the 2004 National Hardware Show, was commissioned
by Reed Exhibitions and conducted by the not-for-profit Home Improvement
Research Institute (HIRI).
The study found that 52 percent of recent home buyers had completed one or
more home improvements within the first year of purchase, and half were
planning at least one more project within the next year. The most frequently
purchased products include paints and sundries, lumber and building materials,
and floor coverings.
Overall, recent home buyers spent more than $3,100 during the first year.
Buyers of older homes spent an average of $2,000, while those who bought new
homes spent an average of $5,000. Owners of older homes most frequently cited
a desire or need to replace worn-out or old materials, while owners of new
construction were most often seeking to beautify the house. Purchases of both
types of homes reported that they did improvements to support new features and
change the decor.
About 40 percent of respondents also said that they made improvements to
their previous home to get it ready to sell. The most common improvements
prior to sale are painting kitchens and bathrooms. One third of those selling
older homes made structural improvements to the exterior or interior of the
house such as replacing or repairing roofs, windows or doors; repairing or
replacing interior walls or ceilings; or converting a room to a different use.
Consumers selling new homes were more likely to install carpeting and improve
landscaping prior to sale.
"The vast majority of homeowners said they believed that the money spent
on improvements to their previous home was compensated by the increased
value," said Fred Miller, HIRI managing director, noting that homeowners spent
an average of $3,000 to improve homes before sale.
New Homes vs. Older Homes
Purchasers of existing homes are more likely to paint interior spaces;
replace or repair flooring; do electrical wiring; and install new lights and
appliances. Owners of new construction are more likely to landscape and build
patios or decks.
Not surprisingly, owners of existing homes have completed and are planning
more improvements than owners of new construction. As noted above, however,
owners of new construction spend more on their improvements. "New home buyers
were more likely to hire contractors, which at least partially explains the
higher average spending, " said Rob Cappiello, industry vice president for the
2004 National Hardware Show.
Cappiello also noted that purchasers of newly-built homes had a higher
average household income than those who purchased older homes, increasing the
likelihood that more high-priced products would be purchased.
Purchasing Home Improvement Services and Products
Overall, contractors are involved in about one third of projects done to
newly-purchased homes and nearly half of the projects completed in previous
homes prior to sale. Consistent with other HIRI research, homeowners most
frequently used contractors who had done previous work for them, or who were
recommended by family and friends. About 10 percent of the projects included
installers from home improvement retailers.
Regardless of professional involvement, it was the consumers who most
often purchased the products. HIRI members The Home Depot and Lowe's were
cited as source for about three-quarters of those purchases.
Paying for Home Improvements
Most consumers said they used money from savings to pay for their recent
projects. Those who purchased existing homes were more likely to use their
savings (77 percent) than purchasers of newly-built homes (94 percent).
Less than 10 percent of home-buyers used credit cards to pay for
improvements, and two percent said they used money from a loan or excess
mortgage money.
About the Study
Telephone interviews with 600 recent home buyers were completed between
March 15 and March 30, 2004. The sample included 300 respondents who had
purchased brand new homes and 300 who purchased older homes. Survey
respondents were pre-qualified as being the household members responsible for
their home or property improvements, and spent an average of 20 minutes to
complete the interview. The margin of error is +/- four percent.
Reed Exhibitions commissioned the study as an exclusive benefit to both
exhibitors and attendees of the 2004 National Hardware Show. "Manufacturers,
retailers and buyers need this kind of information to make smart decisions
about their businesses," Cappiello said. "We wanted to provide specific
actionable data to help all of our customers more effectively market to these
very important homeowners."
HIRI was chosen to conduct the study as the unbiased authority on US home
improvement activity for 23 years. More than 60 leading manufacturers,
retailers, distributors and publishers serving the home improvement industry
are members of HIRI. All HIRI members will receive a copy of this report, as
well as attendees of the Industry Summit on Home Improvement here, where the
report will be presented each morning before the show floor opens.
HIRI's benefits of membership restrict public sales of this study until 12
months after today's release. Throughout May 2004, HIRI is offering a special
one-year trial membership at one-third the annual membership dues for
qualified prospects who wish to access this report now, along with HIRI's
other research reports into the home improvement behaviors of consumers and
remodeling professionals.
For more information on this study, HIRI membership and other data on the
US home improvement industry, please contact HIRI at 813-627-6750. For more
information on the National Hardware Show and its 2005 plans, visit the
website at http://www.nationalhardwareshow.com.
About Reed Exhibitions
Reed Exhibitions, which manages more than 430 trade shows annually
worldwide, is a member of the Reed Elsevier plc group, a world-leading
provider of information-driven services and solutions. Reed Exhibitions offers
integrated market access programs covering exhibitions, trade publications,
direct marketing and the Internet to a database of 3.5 million in North
America. Reed has North American offices in Norwalk, CT, Newton, MA, Palm
Beach, FL, Las Vegas, NV and Toronto, ONT (Canada,) and sales and operations
offices worldwide. (NYSE: RUK/ENL).
About HIRI
HIRI is a 23-year-old trade association that conducts a broad range of
research on the home improvement industry. Members pool their resources
through annual dues to conduct forecasts of industry size and trends, detailed
profiles of consumers, and studies of the practices and needs of remodeling
professionals. For the $10,000 annual dues, HIRI members are receiving
$504,700 worth of research in 2004. Non-members can purchase research reports
after member-exclusivity expires. For more information about HIRI, its
research and membership, visit http://www.hiri.org or call 813-627-6750.
SOURCE Home Improvement Research Institute
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Related links:
http://www.hiri.org
http://www.nationalhardwareshow.com
CONTACT:
Beth Blake, +1-203-840-5451, or Debby
Robinson, +1-312-505-4336, At Show, May 10-12, +1-702-691-8710,
Press Office Room 203; Nora DePalma, Building Profits, Inc. for
The Home Improvement Research Institute, +1-770-772-4726,
ndepalma@building-profits.com, At Show, May 10-12,
+1-678-642-5075
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