Householder Economy: The Surge Capacity
The next 12-24 months will be a period of intense change for not only consumers but also brands and retailers too as the global market continues to feel the after-effects of the Covid-19 pandemic. Other factors such as the rising price of food and access to raw materials, transport and distribution costs as well as the impact of international conflicts will result in a sharp rise in inflation and drastic supply chain issues.
Whilst there are plenty of consumer categories immediately affected by the threat of a rising householder economy, demand hasn’t yet collapsed when it comes to home improvement. The proportion of income spent on food and energy is rising, but the majority of households have accumulated savings well above normal due to the pandemic, with liquid funds averaging £6,500 per household, according to economist, Roger Martin-Fagg.
This cash surplus is due to reduce spending on things like holidays, entertainment, and socialising in 2020 and 2021, now providing householders with a ‘surge capacity’ to invest in their homes. This is reinforced by a householder survey published this week, stating 55% of UK homeowners plan to redecorate this year, with the average spend per home set to reach £10,000, up from £7,000 just three years ago (Houzz).
“We assume householders will draw on their savings in order to maintain their spending plans in the short term, until much higher bills start to be felt later this year,” explains TrendBible founder, Joanna Feeley. “However there are a few factors we are keeping an eye on – rising inflation and stagnating earnings – which would begin to force this picture to change and for demand to slow. It’s a changing picture and it looks different in different countries, and by householder type. For example, a professional sharer who is renting will have different priorities to people raising a family in a home they own.”
The home continues to be central to consumers’ lives, and aside from the practical usage, it is a place where they have the potential to create a place of emotional security and express their tastes. It is these areas of emotional and creative expression which will drive new home improvement projects centred around creating more moments of comfort, connection, introspection and joy.
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