Home Improvement Research Institute (HIRI)

Ana-lysts for HIRI recent-ly released the lat-est iter-a-tion of the U.S. Home Improve-ment Prod-ucts Mar-ket Fore-cast, a valuable report offer-ing insight into the state of the indus-try and the broad-er eco-nom-ic landscape. Here's what you should know: ?? The U.S. home improvement market is set for a 3.9% rebound in 2025 after recent declines, with regions like the South and West leading growth. Top rising categories include flooring and cabinets across the board, as well as garden supplies for consumers and major appliances for pros. HIRI members can gain exclusive access to the detailed forecast now. Not a HIRI member? Sign up today: https://hubs.la/Q02YhCHz0

Calling kitchen and bath pros! HIRI's Executive Director Dave King will be joining forces with the NKBA to discuss some of the most critical trends impacting home improvement and the kitchen and bath industry. Don't miss the highly-anticipated webinar: December 11, 2024 | 12:00 PM ET Attendees can expect to: ?? Identify macro-trends most impacting the K&B industry. ?? Learn of the major motivators and pain points of homeowners and pros pursuing K&B projects. ?? Understand where and how consumers research their K&B projects. Register here: https://hubs.la/Q02XqjKM0

Data from HIRI's 2024 Con-trac-tor Pro-mo-tion Effec-tive-ness study shows that pro-mo-tions?—?whether that be dis-counts, loy-al-ty pro-grams, bulk pur-chase dis-counts, or offer-ing free ship-ping — increase loy-al-ty and per-ceived brand val-ue among near-ly two-thirds of home improve-ment pros. Promotions can be an effective and important tool in your marketing toolkit. For strategic tips on which types of promotions to implement based on your unique customer base, head to the HIRI blog: https://hubs.la/Q02Xq0sn0

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: 1?? Displays & Promotions: Bundle complementary products and offer seasonal discounts. 2?? 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 Cul-hane, VP of brand strat-e-gy at Brunner to explore suc-cess-ful strate-gies for connecting with mil-len-ni-als. 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 home-own-ers who stat-ed they are most con-cerned about polit-i-cal and envi-ron-men-tal issues spent DOUBLE and event TRIPLE the amount on home improve-ment in the last 12 months com-pared to home-own-ers who are most con-cerned about per-son-al or nation-al fis-cal issues. This group of home-own-ers is also the most afflu-ent with 36% earn-ing $160,000 or more and 37% earn-ing between $80,000 and $160,000. When it comes to posi-tion-ing a brand among tar-get buy-ers, it’s impor-tant to con-sid-er their current concerns. You can apply these insights to increase the effectiveness of your mar-ket-ing and adver-tis-ing strate-gies and help bet-ter 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, home-own-ers 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 Hazel-ton from S&P Global Market Intelligence dis-cuss what’s in store for the home Improve-ment mar-ket 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 broad-er eco-nom-ic trends affect con-trac-tors’ oper-a-tions and strate-gic decision-making over the next 12 months: https://hubs.la/Q02Pcr7X0