Home Improvement Expenditures To Average $2,747 In 1999 According To The American Express Retail Index- 36% of Homes to Undergo Improvement This Year

Furniture World Magazine

As Spring approaches, many Americans are beginning to think about sprucing up their homes, both inside and out. In fact, 36% of households are planning some kind of improvement or redecorating project in 1999, according to the American Express Retail Index. To see their plans become a reality, consumers will spend an average of $2,747 on everything from landscaping to room expansion. Now in its fourth year, the American Express Retail Index on home improvement trends is compiled from a national, random survey of more than 800 consumers. The American Express Retail Index shows that the traditional Spring rush on home improvement and redecorating will take hold this year, as 62% of households that plan projects will begin them between March and June. Fixer-uppers have a variety of plans this year, including interior decorating (41%), renovation/remodeling (32%), landscaping (23%), exterior decorating (22%) and mandatory maintenance (22%) and most households (67%) will do the work on their own. To pay for these projects consumers will use savings (69%), a tax refund (23%) and credit and/or charge cards (17%; up 5% from 1998), among other means. "We have seen for four years running that consumers come out in force and spend heavily on improving their homes," said Brad Thompson, vice president, Retail Industries, American Express Company. Thompson adds, "the economy, as well as the home improvement market, continues to be strong, giving households the confidence in their spending power to complete the projects they start." A $112.2 billion industry in 1998, the home improvement category is expected to reach $136.7 billion by the year 2003, according to the Home Improvement Research Institute. The American Express survey mirrors this projection by having shown level or year-over-year growth in the number of consumers planning home improvement projects since 1996. Why Households Catch the Improvement Bug Consumers cite a variety of reasons for making changes to both the interior and exterior of their homes, with the top reason, noted by 47% of households, being 'changes in personal taste.' Other major factors in their decisions include mandatory maintenance (30%), increase resale value (11%), need more space (6%) and emergency repairs (4%). Consumers get ideas for home improvement and redecorating projects from a variety of sources. The most popular places include magazines/newspapers (38%), neighbors/family (24%), their own concepts (23%), television home improvement/design shows (22%) and retailer displays/showrooms (16%), among others. America's Dream Home Although consumers plan to spend an average of close to $3,000 to spruce up their homes in 1999, many would make some significant changes to their home if money were no object. As ranked by consumers, the top five choices would be: a room addition, the full remodeling of a room, to sell and buy a new home, complete remodeling of the home, and landscaping. Other ideas that households would consider if cost were of no concern include building a porch or deck, completely rebuilding their home, putting on a new roof, and installing a pool. Most consumers (51%) would leave the work to a contractor if cost were of no concern, however, one-third (34%) would still complete plans on their own. When it comes to additions, consumers would add a family room (24%), a bathroom (17%), a master bedroom (15%), a kitchen (12%) or any other bedroom (12%). Also, if they could remodel any room, 42% of households would start over in their kitchens, followed by the bathroom (25%), master bedroom (15%), living room (15%) and any other bedroom (9%). Shopping for Home Improvement Needs With so many different types of projects planned each Spring, a variety of retailers are sought by consumers who need everything from hand tools to lighting fixtures to window treatments. Like last year, the majority of households (62%) will shop at a home improvement store to find the products they need. Other popular retailers among consumers are department stores (17%), hardware stores (15%), home furnishings/decorating stores (14%) and lumberyards (9%). American Express is welcome at the stores, restaurants, hotels and service providers where Cardmembers spend on everything from health and beauty aids, to computers, to a weekend away. American Express Company is a diversified worldwide travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products, insurance and international banking. Please visit the company website at www.americanexpress.com or e-mail: judy.g.tenzer@aexp.com