Spending tracker reports Pinteresting home trends

According to the latest American Express Spending & Saving Tracker, 2014 is looking to be a big year for new homes and do-it-yourself projects.

“All of the costs associated with moving can really add up, but more consumers are feeling confident that they can afford to put down new roots,” said David Rabkin, SVP consumer lending products for American Express. “With more people looking to purchase a home this year instead of rent, and with seller confidence on the rise, it will create an interesting push and pull as buyers and sellers negotiate.”

That optimistic assessment with major implications for the home improvement product market comes from online research of a random sample of 1,503 adults, including the general U.S. population, homeowners, as well as an affluent demographic. (Affluent defined as minimum annual household income of $100,000.) Research was conducted by Ebiquity Feb. 12-14.

First off, the data shows more consumers are planning to move.

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  Just under 1-in-5 (or 16%) consumers plan to move in 2014, up from 10% in 2012.


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  Of those planning to move, 46% plan to purchase a new home, condo or apartment, compared with 44% who plan to rent.


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  The own-versus-rent figures essentially swapped since 2013, when “plan to rent” was more popular by about the same margin.

Meanwhile, confidence among home sellers is growing, if not brimming. When consumers were asked to describe their confidence level that they would get the asking price for their home sale, the latest data shows nearly two-thirds are “very confident” or “somewhat confident.”

Percentage of consumers who are very or somewhat confident about their asking price:

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  2010: 40%


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  2011: 43%


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  2012: 42%


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  2013: 57%


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  2014: 65%

With consumers focused on and confident about their dwellings, a majority are planning home improvement projects in 2014 (see chart). More Americans — 72%, to be exact — are warming up to the DIY ethos, up from 66% in 2010. Contractors might have less to cheer about, given that 15% plan to hire a professional, compared with 17% in 2013, and 22% in 2010.

The American Express Spending & Saving Tracker looked at the biggest factors influencing home improvement projects.

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  Make changes to my home that better reflect my preference and style: 35%;


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  Increase the value of my home: 28%;


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  Prepare my home to sell: 9% (up from 6% in 2013);


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  Create more room for entertaining friends and family: 7%; and


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  Make more room for a growing family: 4%.

The Tracker also measured inspiration, where the biggest positive movement is taking place on Pinterest and other social media sites. Here’s the rankings of sources of inspiration for home improvement plans:

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  DIY and design TV shows: 38%


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  In-store displays: 35%


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  Online design or DIY websites: 30%


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  Home decor magazines: 29%


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  Homes of friends: 29%


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  Social media sites: 19% (up from 14% in 2013)


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  Home catalogs: 17%


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  Design show rooms: 15% (down from 22% in 2013)


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  Interior designer advice: 8%