Home buyers can be counted on
It is an indisputable fact that new move creates new needs. From new furnishings to home renovations, new movers spend more than the average consumer — 20 times more by some accounts.
That is why the change of address (COA) market is crowded with lists derived from various sources of new movers. Everyone is rushing to reach the mailbox first and welcome the new mover with their offers.
Now imagine if you could reach buyers of newly built homes. According to a Housing Economics study, these new movers spend 32% more than existing homeowners in the first year on home furnishings, appliances, and home repairs.
A recent ALC and Decision Analysts Inc. study determined that new homeowners outspent existing homeowners by an average of three times more in many product categories including furniture, dish satellites, home security systems and, not surprisingly, swimming pools. They also applied for financial loans, purchased new cars, and signed up for cell phone service in higher percentages.
Overall, the study found that new homeowners spend eight to 10 times more than the average consumer within the first two years of living in their new home. Those who move into newly built homes spend even more.
When you think about it, buyers beginning a new life in a new house will do much to customize it. Landscaping, window treatments, play-gyms, sprinkler systems, bed and bath linens, financial services, construction and home repair products are just some of the products they are likely to seek, and the list goes on and on. The need for so many brand new items boosts the buying power of new construction homeowners exponentially.
The market potential of new construction homebuyers is vast. Valassis reports that more than 30,000 Americans move into brand new homes every month, or 1.6 million per year.
From day one, these New Construction home buyers begin spending, and continue outspending existing homeowners and other new movers for at least the next two years. Therefore, new construction targeting represents a new strategy that marketers can implement to truly achieve speed-to-market and be among the first to get offers delivered into brand new mailboxes.