GreenSage E-zine Fall 2009

Remodeling Trends: Consumers Greener, Rich Reluctant

With banks and employers failing us this past year, homeowners are now looking for anything that will let them take back control in their lives, and that includes going green and saving energy. We're seeing trends that range from whole-house and portable generators, tankless water heaters and rain barrels to modest remodels using green materials. And because this green thing is so new to so many, they're doing their own research to make their own lifestyle changes.

Because we're all impacted by this new economic climate, as a culture we're nesting more (spending more time at home) and making our homes work better for us. This nesting instinct is feeding our desire to rebuild, restore, and remodel. Again, its our inate need to grow (see our editorial this month). Now, however we also have the need for more balance in our lives including practicality, happiness, comfort and self-expression with our home — and a dash of fulfillment that we get from it.

Conspicuous consumption is gone, at least for now, and we're taking on a pragmatic attitude when it comes to remodeling and updating. More remodeling clients are choosing to work within their homes’ existing footprints, rather than expand (also feeding the energy-saving trend). Unfinished basements have become prime remodeling targets fulfilling our stronger sense of family and social trends. And, as has been the case for so long, we continue to consider our kitchens as central to our homes and livestyle. We're growing and cooking more of our own food and eating out less.

America’s richest consumers, however, are holding off on major remodeling projects as well as on new home purchases.

That unsurprising fact is included in a new survey by the American Affluence Research Center (http://www.affluenceresearch.org/), a marketing firm that studies the wealthiest 10% of U.S. households.

It notes that only about 10% of the affluent are planning major remodels this year, less than half of what they were last year at this time. Compare that to 34% in 2005, the biggest year for remodeling by wealthy homeowners.

The Center also notes that “plans to acquire either a primary residence or a vacation home have declined to record lows.”

The report is based on a survey of households with an average annual income of $290,000, an average net worth of $3.1 million, average investable assets of $1.4 million and an average primary residence value of $1.2 million.