A Consumer Strategist/Account Planner's View:

New Perspectives:  Consumers emerging core values for their homes

 The “Great Recession” leaves a lingering imprint on American consumers affected and deeply shaken by its impact.  Priorities and values which strongly shifted during the recession are now moderating to a sustainable realistic application.  Exuberance and grandeur materialism is no longer acceptable, nor frugality maintainable; both are replaced with a disciplined approach to spending.  “Good enough” becomes a new term to live by; meaning consumers do not need to achieve or obtain everything right away, they only need what is good enough for now.  Individual self-interest is morphing into the good of the community.  Growing weary of cocooning in one’s homes, families will reach out to neighbors, friends and families though shared experiences.

The Millennial generation, 92 million strong, is entering their home ownership and family rearing life stages.  They embody characteristics centering on cooperation, unity, and an awareness of and commitment to solve major world problems.  Facing the deep recession in young adulthood, they will apply realizations to their lifestyle including a penchant to live within their means and be less wasteful.

As these two key factors are changing Americans relationships with their homes, new areas of focus arise as strong focuses are placed on Community, Simplicity, and Conspicuous Environmentalism.

Community

During the recessionary period, American consumers pulled back from many external activities to save money.  As people start spending again, though more responsibly, they will look outside their home to become more social, connect with others, and obtain personal fulfillment.  Relationships with neighbors, family and friends will provide this fulfillment and status rather than the material things that did so in the past.  Yet, homeowners will not look far past their front door as their community (the surrounding neighborhood) becomes one’s desired hub.   The place matters more than the product (house) and will drive value.   

Home owners will want to live in walkable multiple-use neighborhoods which mean that grocery stores, boutiques, restaurants, entertainment, and physician offices are located in close proximity.  Easy access to transportation hubs that supply alternative modes of transportations (such as trains and buses) becomes a priority.  In short, consumers will reside in denser population areas close to activities they enjoy and where their all aspects of their lives occur.

Rising in importance are values centering on connection with others, cooperation (to solve issues), and personal development.  Look for neighborhoods to possess more bike/walking paths, common areas, and community vegetable gardens.  Housing will embrace community by placing more emphasis on its front yards; homeowners will utilize larger front porches and flower gardens.

Simplicity

The must “keep up with the Joneses” and out-of-control extravagances and attitude of the past two decades culminated in stressful and overburdened lives.  Consumers are yearning for manageable lives that they can control.  For many, this means reducing complexities and simplifying their personal and home lives.  Home provides comfort and a haven rather than the burden it once became for so many.

What does this mean?

·         Smaller homes—Look for Millennials to lead the way as they purchase smaller homes (approximately 2300 average square footage or less vs. 3900 average square feet that the McMansions offered) that fit more comfortably within their financial means (not ignoring the influences of a continued tightened credit market and rising necessity costs).  Smaller homes provide other advantages as less space needs less cleaning/upkeep (more time to spend enjoying one’s community), lower heating/cooling costs, and a more efficient household.  Space will become more open and reconfigurable allowing expansive, yet modifiable rooms and areas.

·         Simple tech—Not all consumers want complex technology with all the bells and whistles.  As value is placed on simplification, more will demand easy-to-use technology.  Prized features are easy set-up, ‘at-my-level’ operational guide, and modular designs providing a range of options from basics (only what I need) to technology sophistication.

·         Less is more—Consumers will value financial sanity rather than feeling overextended or “house poor”.   As a result, they understand that they will not get everything they want placing importance on the prioritizations process (what do they need versus what do they want).  This is not to say that wants will go unfulfilled; rather trade-offs will be made.   What does this mean to brands and companies?  Consumers will expect quality products and services in return for their investment; they will hold higher expectations in the included amenities of the scaled-down home design (including appliances and furniture).  For example, they may purchase fewer appliances, but they will expect more customization, and better design features.

Conspicuous Environmentalism

The “Green” movement has taken hold of the housing market.  American households believe it is important to reduce household operational (mainly energy) costs and to live responsibly.  Most American consumers will become committed; even peer-pressured to stay current with their neighbors “Green” progress.  For many, the new “green” homes will be too expensive to purchase.  Rather, they will make changes that are affordable, not too disruptive to one’s current lifestyle, and provide incremental positive impact.  Rain barrels, composts, and geothermal heating and cooling systems will become prominent.  Potential opportunities include additional affordable investments identifiable by neighbors such as built-to-last furniture (unbreakable) that can be customized (through covers, etc) in appearance, prominent use of bamboo throughout homes, cordless rechargeables, and clothes lines.  Look for homeowners to not fight the natural environment they live in, but rather seek harmonious balance.

 American consumers have been affected by the prolonged “Great Recession” and recovery; these psychological drivers will linger.  As American consumers have faced their new financial realities with protective actions (cocooning in the home, saving money, paying down debt, and living more responsibly), their perceptions and values towards homes have changed. Consumers will turn outwardly to their community for self-worth, meaningful relationships and efficient living.   Homes will provide consumers an oasis from the overwhelming hectic world by simplifying tasks and removing clutter.  Finally, homeowners want to ensure their home is a sanctuary rather than a source of stress by purchasing smaller, more affordable homes that provides them the customizable comfort they need.  The home will no longer serve to isolate individuals and families from the outside world, but rather connect them to their neighbors, the larger community, and its natural environment.

Authored by Anne Gibson