New study finds that home renovators continue to spend

Despite continual reminders that the global economy is in a state of disrepair, a recent report by Roy Morgan has unearthed evidence that shows there are still areas where people continue to spend. The home is one of them.

Home is where the heart is: studies show that people are continuing to pump their hard-earned cash into creating, maintaining and revamping such an integral ingredient for a happy and healthy life.

Of particular note is the finding that those who have renovated or extended in the last year are 41 per cent more likely to keep up-to-date with renovation and extension techniques, products and ideas. The report also established that for the past five years approximately 10 per cent of the population aged 14 and over have spent $5000 or more on renovations or extensions.
While approvals for private sector houses have fallen, home renovations have remained relatively stable, with 2.05 million Australians having spent $5000 or more renovating or extending their home in the past 12 months, according to the latest findings from the Roy Morgan Single Source survey. This figure, representing 10.6 per cent of the Australian population aged 14 and over, has remained stable over the past five years, moving from 1.95 million Australians having renovated in the last 12 months in 2008 to 2.05 million in 2012.

Looking at those who are renovating, we see that as Australians’ living requirements change, and as their family grows, so to does the need for renovations and extensions. With less of a foothold in the property market and less income, young singles (4 per cent) are unlikely renovators. However, as singles become young couples the likelihood of becoming renovators increases to 11 per cent. Continuing through the life stages, we see a higher incidence of renovation in young parents and mid-life families (13 per cent each), and then a gradual decline through mid-life households (12 per cent) and older households (9 per cent).

Those Australians who have renovated or extended in the past 12 months are proud of their home and their family. They are 41 per cent more likely than the average Australian to keep up-to-date with new home improvement ideas, 15 per cent more likely to entertain spontaneously, and 6 per cent more likely to be proud of their family. They are also 25 per cent less likely than the average Australian to be more interested in their job than their house — it’s all about the house.

Norman Morris, industry communications director, Roy Morgan Research, says: “The popularity of TV shows like The Block and the number of new Bunnings, Masters and Mitre 10 stores shows what a big business home renovating is. The typical home renovator is a highly attractive target. Typically they live in a young to mid-life family, they’re well educated and have a higher than average income.

“But as our findings reveal, there are distinct life-stage factors affecting those who renovate. We see that renovating your home is a family affair as a higher proportion of families renovate, and that the home is the heart for family entertaining.
“As the home hardware category competition intensifies it will be interesting to see how each competitor will tailor their advertising and product offering to these distinct segments.”

For more information:
Roy Morgan Research
website: roymorganonlinestore.com/News/Home-renovators-still-spending.aspx
 

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