Remodeling marketers just got a new tool. Hanley Wood Market Intelligence has refined the 66 consumer “segments” in the Nielsen Claritas PRIZM NE Segmentation Model to identify nine core “Housing Consumer Groups” — types of individuals exhibiting similar lifestyle, demographic, and behavioral characteristics that relate to housing issues. Of the nine, three — known as “Family Life,” “Elite,” and “Active Adult Elite” — consistently turn up in analysis of not only the overall tendency to remodel but also the likelihood to undertake specific remodeling projects.
Family Life
Account for 10% of all U.S. households. Traditional middle- to upper-class families with a focus on their children; head of household between 35 and 64. College educated, in professional occupations; average income of $75,000 to $150,000.
High rate of homeownership (85%); average home values between $150,000 and $500,000.
The group most likely to: sell or change homes; do a bathroom addition; live in a home built since 1990; to shop at Lowe’s; trust the Internet.
Fun Facts: Life is dominated by children; high propensity toshop online — 30% of these households buy products on eBay; 41% of these households watch Extreme Makeover: Home Edition two to four times per month.
Elite
Account for 9% of all U.S. households. Affluent families and older couples with custom tastes, country club preferences. Head of household between 35 and 64; 40% have children under 18. High number of post-graduate degrees; average incomes well over $100,000. Very high home ownership (92%); average home values over $500,000; own 43% of U.S. homes valued over $1 million.
The group most likely to shop at The Home Depot; second most likely to move or change homes; two times more likely than average to undertake a remodeling project.
Fun Facts: High propensity to order products by phone; shop at Bloomingdale’s and Nordstrom; contribute to PBS; watch golf and tennis on TV; read the newspaper; trust the Internet most of any group.
Active Adult Elite
Account for 6% of all U.S. households. Wealthiest active adult households.
Head of household between 55 and 74; less than 2% have children. Many still employed full time (44%), mostly as professionals or in management; average income between $75,000 and $150,000.
Highest rate of home ownership (97%); average home values of $200,000 and up; 50% live in homes built between 1950 and 1979. The group most likely to: do roofing projects over $1,000.
Fun Facts: Four times more likely to be members of country clubs; attend opera several times a year; contribute to PBS; belong to civic clubs; heavy watchers of cable news (CNN, Fox, and MSNBC); trust magazines most.
—Stacey Freed, senior editor, REMODELING.
This matrix shows the three key Housing Consumer Groups in the upper-right quadrant, indicating higher-than-average home ownership and tendency to remodel. The scale is literal — lines at 100 indicate the average. So, for example, members of the Elite group (bright blue circle) are two times more likely than average to remodel their homes. Data like this is also available for specific remodeling projects.
