Since 2009, housing market trends point to continued growth in the renters market.
I believe that in the building products industry, it’s important to keep an eye on housing trends and how it could affect your marketing and even your product line. Epsilon Targeting’s New Mover Report 2011 mentions a few key statistics that are worth adding to your radar. It is also important to understand why this data is changing. The reasons vary from a decline in home ownership, a growing market of renters, and also a change in population. Here are some insights on these statistics and what they can mean for your marketing:
New Home Sales v. New Movers
Epsilon Targeting’s data is showing that Existing Home Sales continue to stay low, but that the number of New Movers has been steadily increasing since mid-2009.
What it means for your marketing: The increase of new movers is great news to some in the building product industry. According to Epsilon, “New mover households spend 52% more that non movers on home decor and furnishings during the year of their move.” which translates to more sales, right? Some of the causes include 1.4 million houses being foreclosed in 2010, with more expected in 2011 and home ownership rates continue to decrease. Both of these lead to more renters and less new home sales.
A Growing Market of Renters
Since these numbers aren’t matching up, we can tell that many of those new movers are renting instead of buying.
What it means for your marketing: Renters are less likely to make investments into the physical structure and landscape of their home and are more likely to make purchases that can move with them such as lighting, appliances, and furniture. Any home improvements made will likely be ones that see an immediate benefit, rather than a continuing benefit. The focus is on utilitarian benefits that could include tax breaks on green products and the promise of lower utility bills.
Demographic Changes Add to the Renters Mix
According to the U.S. Census, “the Hispanic population has grown 37.4% from 2000 to 2010, while the total population grew only 9.1%” Hispanics are also twice as likely to rent when compared to the non-Hispanic population and are more likely to move in a year.
What it means for your marketing: Having Spanish collateral is becoming increasingly necessary for all marketing. Plus, marketing in Spanish media is often cheaper and allows for better targeting.
- New Mover Report 2011: a Growing Market of Renters – Epsilon Targeting
- Census: New Residential Construction