Survey Shows Homeowners Ready To Remodel
Atlanta, GA, May 11, 2009--A national study indicates a much improved outlook for the home improvement industry in 2009, as well as significant shifts in the way homeowners invested in their homes in the first quarter of 2009.
The 2009 ServiceMagic.com Home Remodeling and Repair Survey showed that homeowners are saying they're ready to tackle projects they've been postponing due to the economy.
"Our survey shows that homeowners are feeling more confident about the economy this year, compared to last," said Craig Smith, CEO of ServiceMagic.com. "Of the 35% who postponed a home improvement project last year, more than half now say they intend to do it this year. We feel the sentiment shows that positive trends are aligning and we're seeing a light at the end of the tunnel."
But, there is also evidence of dramatic shifts in home improvement spending.
In addition to surveying homeowners and service professionals about the economy, ServiceMagic.com is also releasing its first quarter data, showing which projects homeowners are now focusing on.
"Across the board, we see a story developing about how home improvement was reshaped by the recession," Smith said. "The trends we found in looking at our data may, in fact, prove to be short-lived as the economy picks up. But in the first quarter of 2009, homeowners clearly focused more on increasing the "live-in" value of their home. They decided they may be staying there for longer than originally thought, so they took on home improvement and repair projects that made "pride in ownership" a factor in their decisions."
The data measures one million service requests received by ServiceMagic.com in the first quarter of this year, comparing them to the same quarter of 2008.
"Based on the one million home improvement requests from the first quarter, along with consumer and contractor survey data, it appears the home improvement industry is on the rebound," said Smith. "We anticipate homeowners will invest in targeted, economical enhancements that increase long-term property value, improve energy efficiency, or add home appeal as more Americans 'nest' during the recession."
Here are some of the key findings in the survey:
* Lower-budget projects for long-term investment: Compared to 2008, the report found a 26 percent increase in fixing/refinishing existing furniture requests; 17 percent increase in home appliance maintenance requests; a 26 percent increase in carpet and upholstery cleaning and 28 percent increase in heating/furnace system requests. Combined, these trends suggest homeowners are performing more preventative maintenance to preserve home value, rather than making major upgrades.
* Green is still red hot: Compared to 2008, the report showed a 101 percent increase in home energy audits, 26 percent increase in insulation, and 13 percent increase in solar panel related service requests. Additionally, 46 percent of homeowner requests expressed interest in green or energy efficient solutions.
* Repair on rebound: 68 percent of homeowners are more likely to consider a previously postponed home repair project; 33 percent are more likely to put money into any type of home improvement project now than 12 months ago.
* Contractor sentiment: 72% of home service professionals responding to the survey say they are optimistic about their company's performance for the rest of 2009.
However, the study also shows a major turn-around in optimism in just the last few months. Thirty-three percent of consumers say they are more likely to put money into any type of home improvement project than they were just three months before.
"The key takeaway from this data is that American homeowners are still spending on improvements, but the motivation to open their wallets has changed," added Smith.
"We believe that consumers have a new lens on home improvement. Rather than pursuing substantial remodels to ready their home for a sale, consumers (55%) now view their home as a longer-term investment. This means they are interested in projects that protect property value or make the best out of what they already have."