At the 2011 Remodeling Leadership Conference, Hanley Wood executive director of research Jonathan Smoke presented an industry forecast with details on how U.S. households break down by consumer group.
The data from the April 2011 Residential Remodeling Index can help remodelers target their marketing dollars by focusing on the most promising groups, including Family Life, Elite, and Active Adult Elite. Smoke offers the following descriptions of the groups mentioned above.
Feature & Location: Usually young urban professionals. Many of these consumers rent, making them less likely to remodel.
Simple Life: These suburban consumers have an 89% rate of homeownership. Though they’re inclined toward DIY projects, this group often looks into projects such as basement finishing, flooring, roofing, and room additions.
Family Life: Kid-focused middle- to upper-class families. With average incomes between $75,000 and $150,000, and an 85% homeownership rate, this group is most likely to add a bathroom.
Elite: These affluent homeowners have high average incomes and home values upward of $500,000, and is the group most likely to do a remodeling project.
Active Adult Feature & Location: Nearing retirement, these homeowners offers good targets for kitchen remodels or exterior replacements. Most have lived in their homes for more than five years and more than half live in homes built before 1980.
Active Adult Elite: Half of these wealthy homeowners live in homes built between 1950 and 1979. Many are retired, but 44% work full time with average incomes between $75,000 and $150,000.
—Lauren Hunter, associate editor, REMODELING.