A recent survey by Citi shows encouraging trends in the home improvement industry. The bank’s findings show that consumers are maintaining or increasing spending on home projects and are increasingly choosing Amazon ( NASDAQ: ) and Walmart ( WMT ) to purchase home improvement products.
“Our survey data provides a positive outlook on home project plans and costs,” said Citi analysts, who partnered with the Citi Research Innovation Lab to collect responses from nearly 1,500 consumers.
The survey found that 74% of respondents had completed a home improvement task in the previous year, and 63% planned to start one in the next year. These percentages are in line with or slightly increased compared to the previous year, 2023.
The primary motivation for these projects is still general home maintenance and repair, but there has been a small increase in people improving their homes to prepare them for sale or to increase the market value of their property.
Notably, the amount spent on home improvements also increased slightly from year to year, with participants reporting an average of $10,677 spent in the past year. The biggest increase in spending was seen among those earning between $50,000 and $99,000 a year.
Looking ahead, 84% of survey respondents expect home improvement spending to remain stable or increase over the next year. The research predicts a 4.7 percent increase in spending compared to last year.
In addition, the survey shows a modest increase in the number of people choosing to seek professional help; 44% plan to do so this year, up from 41% in 2023.
However, the most notable change revealed by the survey is the rise in popularity of Amazon and Walmart as preferred retailers for home furnishings and materials.
“Both AMZN and WMT posted significant gains in this year’s survey,” Citi analysts reported. This trend shows that these large retailers provide a larger share of the home improvement market.
The survey also shows a consistent preference for Home Depot ( HD ) over Lowe’s ( LOW ) when shopping for home improvement supplies, with 62% choosing HD, down from 38%. -In comparison with: This preference has slightly strengthened compared to the results of 2023.
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