Remodeling marketers just got a new tool. Hanley Wood Market Intelligence has refined the 66 consumer “segments” in the Nielsen Claritas PRIZM NE Segmentation Model to identify nine core “Housing Consumer Groups” — types of individuals exhibiting similar lifestyle, demographic, and behavioral characteristics that relate to housing issues. Of the nine, three — known as “Family Life,” “Elite,” and “Active Adult Elite” — consistently turn up in analysis of not only the overall tendency to remodel but also the likelihood to undertake specific remodeling projects.
Account for 10% of all U.S. households. Traditional middle- to upper-class families with a focus on their children; head of household between 35 and 64. College educated, in professional occupations; average income of $75,000 to $150,000.
High rate of homeownership (85%); average home values between $150,000 and $500,000.
The group most likely to: sell or change homes; do a bathroom addition; live in a home built since 1990; to shop at Lowe’s; trust the Internet.
Fun Facts: Life is dominated by children; high propensity toshop online — 30% of these households buy products on eBay; 41% of these households watch Extreme Makeover: Home Edition two to four times per month.
Account for 9% of all U.S. households. Affluent families and older couples with custom tastes, country club preferences. Head of household between 35 and 64; 40% have children under 18. High number of post-graduate degrees; average incomes well over $100,000. Very high home ownership (92%); average home values over $500,000; own 43% of U.S. homes valued over $1 million.
The group most likely to shop at The Home Depot; second most likely to move or change homes; two times more likely than average to undertake a remodeling project.
Fun Facts: High propensity to order products by phone; shop at Bloomingdale’s and Nordstrom; contribute to PBS; watch golf and tennis on TV; read the newspaper; trust the Internet most of any group.
Active Adult Elite
Account for 6% of all U.S. households. Wealthiest active adult households.
Head of household between 55 and 74; less than 2% have children. Many still employed full time (44%), mostly as professionals or in management; average income between $75,000 and $150,000.
Highest rate of home ownership (97%); average home values of $200,000 and up; 50% live in homes built between 1950 and 1979. The group most likely to: do roofing projects over $1,000.
Fun Facts: Four times more likely to be members of country clubs; attend opera several times a year; contribute to PBS; belong to civic clubs; heavy watchers of cable news (CNN, Fox, and MSNBC); trust magazines most.
—Stacey Freed, senior editor, REMODELING.