House Call: Upgrades Add ValueWhether selling or staying put, consumers say they’ll spend an average of 14% more on home improvement projects this year than last. Seventy-two percent of Americans, on par with last year, will spend an average of $4,000 on fixing and sprucing up their homes. “Consumers are investing in their homes this year across nearly every category from DIY to new home furnishings,” said David Rabkin, SVP U.S. Consumer Lending Products, American Express. “Whether they’re redoing one room or the whole house, there is a significant bump in spending that should bode well for many merchants.” Homeowners plan to spend an average of $4,000 this year, up from $3,500 in 2012:
- 62% have plans to purchase new home accessories or furniture
- 63% are remodeling their interiors, spending an average of $3,300
- 39% are remodeling outdoors or landscaping, spending an average of $1,800
- 39% are re-doing a single room, spending an average of $2,900, and
- 33% are updating their appliances, spending an average of $1,033
When asked for their primary reason to make such upgrades, 31% hope to see a return on investment in energy savings, 19% an overall improvement on the value of their homes, 15% are making an effort to reduce their carbon footprint, and 14% are motivated by government tax credits and incentives, which will extend into 2013.The American Express Spending & Saving Tracker research was completed online among a random sample of 1,518 adults, including the general U.S. population, an affluent demographic, defined by a minimum annual household income of $100,000, and homeowners . Interviewing was conducted by Echo Research between February 27 and March 1, 2013. These findings have a margin of error of ± 2.5 (total respondents) and ± 3.0 (homeowners) percentage points at the 95% level of confidence. About American Express American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, foursquare.com/americanexpress, linkedin.com/companies/american-express, twitter.com/americanexpress, and youtube.com/americanexpress. Key links to products and services: charge and credit cards, business credit cards, travel services, gift cards, prepaid cards, merchant services, business travel, and corporate card.