Home Improvement Research Institute (HIRI)

HIRI's 2024 Home Improvement Retail Selector Study shows that nearly 3 in 4 shoppers prefer one-stop shopping. Promoting cross-category purchases can be an effective way to enhance your customer experience and drive sales. 💡 Key strategies you can deploy involve: 1️⃣ Displays & Promotions: Bundle complementary products and offer seasonal discounts. 2️⃣ Category-Adjacencies: Use store layout to increase exposure to related categories. Head to our blog to learn which home improvement categories have a high rate of cross-category purchasing: https://hubs.ly/Q02SbcDt0

Members, join us for a webinar on October 17 to hear Patrick Cul­hane, VP of brand strat­e­gy at Brunner to explore suc­cess­ful strate­gies for connecting with mil­len­ni­als. Attendees will leave with an actionable 5-point plan to better engage with this crucial segment of homebuyers. Register here: https://hubs.ly/Q02S9R530

Thank you to all who joined us in Chicago for the 2024 HIRI Insights Summit! As always, it was an invaluable opportunity to connect with leaders in the home improvement industry and learn about the trends shaping our field. A few top takeaways from the event: 🔹 Consumer demand remains strong despite economic challenges, with a focus on value-driven projects. 🔹 Older homeowners with high value homes account for nearly half of home improvement spending consistently, and drive the need for Pros to complete the work. 🔹 Gen Z and Millennials are leading the DIY movement, bringing new opportunities and preferences to the market. 🔹 Consumers are prioritizing eco-friendly materials and energy-efficient products more than ever before. Missed the event or just want a refresh? Dive deeper into the insights from each speaker in our full recap 👉 https://hubs.ly/Q02SbW350

Middle-income families show the most promise for smart home and energy efficient product adoption of all segments of homeowners. Where does the opportunity lie to connect with this group? They are driven by: 💵 the opportunity for reduced costs 🏡 the desire for a comfortable, convenient and healthy lifestyle 👨💻 an interest in technology However, about a quarter of this group reports concerts over the technical aspect of smart home, energy efficient and sustainability products, while one-third is resistant to smart home technologies due to privacy and security concerns. Be sure to tailor your messaging appropriately, and check out HIRI's infographic on middle-income families for more insights: https://hubs.la/Q02RRgr-0

Interestingly, HIRI research has found is that home­own­ers who stat­ed they are most con­cerned about polit­i­cal and envi­ron­men­tal issues spent DOUBLE and event TRIPLE the amount on home improve­ment in the last 12 months com­pared to home­own­ers who are most con­cerned about per­son­al or nation­al fis­cal issues. This group of home­own­ers is also the most afflu­ent with 36% earn­ing $160,000 or more and 37% earn­ing between $80,000 and $160,000. When it comes to posi­tion­ing a brand among tar­get buy­ers, it’s impor­tant to con­sid­er their current concerns. You can apply these insights to increase the effectiveness of your mar­ket­ing and adver­tis­ing strate­gies and help bet­ter resonate with different segments of customers. A concern for the environment may be an opportunity to connect with big spenders on sustainable home improvement upgrades and energy efficient appliances. For other groups, it would be best to emphasize cost savings for the same products, if applicable. Learn more ways home improvement spending has changed for 2024: https://hubs.la/Q02Pccd10

Amid high interest rates and inflation, home­own­ers have been approaching home improvement projects with caution. However, economic factors indicate a positive outlook for the industry. Members, join us for a webinar on September 26 to hear Scott Hazel­ton from S&P Global Market Intelligence dis­cuss what’s in store for the home Improve­ment mar­ket in 2024 and beyond. Register here: https://hubs.la/Q02R0nXb0

According to HIRI's latest Quarterly Contractor Business Sentiment Tracker, smaller contracting firms report that they will be more sensitive to material costs over the next year while larger firms are focused on interest rates and financing due to the scale of their projects. With this in mind, home improvement businesses can tailor their marketing campaigns to address these specific concerns. ⭐️ When communicating with smaller firms, highlight cost-effective, high-quality materials and promotions. ⭐️ For larger firms, consider focusing on explaining financing options, bulk purchasing benefits and long-term value building programs. Learn more about how broad­er eco­nom­ic trends affect con­trac­tors’ oper­a­tions and strate­gic decision-making over the next 12 months: https://hubs.la/Q02Pcr7X0

When it comes to smart home automation and energy conservation, new technologies that promise cost savings and convenience continue to pique homeowner interest. However, HIRI's recent Home­own­er Trends in Ener­gy Effi­cien­cy, Smart Home and Sus­tain­abil­i­ty Study shows notable dis­tinc­tions among which cus­tomer demo­graph­ics are most likely to adopt these types of products. The following graphic shows seven distinct homeowner segments and their perceptions and motivations toward the energy conservation and smart home market. Are you surprised by these findings? Read more about homeowner views and sentiments in this market: https://hubs.la/Q02N9rFZ0

Who should you be connecting with right now to increase sales? HIRI research reveals that overall, younger, higher income, non-white homeowners are the most likely to feel that it’s a good time to complete a project <$5K and be planning increased home improvement spending over the next year. It may be that if your business isn't prioritizing the newest generations of homeowners, you could be missing out on important opportunities. This comes from HIRI's latest US Homeowner Project Activity Tracker, a study that aims to gain insight into home­own­ers’ atti­tudes and the moti­va­tions dri­ving home improve­ment ini­tia­tives. To learn more about what homeowners in the US are thinking right now, access the full report: https://hubs.la/Q02Lwhlw0

Despite economic uncertainties and inflation, home improvement spending is looking to recover with a small rise in 2024. Here are a few trends we're seeing that point toward homeowner readiness in the home improvement market: 1. Homeowners are leaning towards DIY projects, particularly those under $5,000, due to increasing renovation costs. 2. High-income households are likely to drive more significant spending while lower-income families tighten budgets. 3. Motivation for projects is shifting towards enhancing enjoyment of the home rather than extensive remodels. While homeowners may be conservatively moving forward, we're optimistic about the coming years for the industry. Get five more reasons why from the HIRI blog: https://hubs.la/Q02LvQrm0