Homes of the Future: Trends and Strategies for Success
The Home Report Summer 2023, produced by Boutique, is a review which offers valuable insights into the evolving dynamics of home living, focusing on three key trends and strategies for success in this ever-changing landscape.
Changing Consumer Behaviour
The rising cost of living is reshaping consumer behaviour, pushing individuals to be more mindful of their spending. People are now favouring value-oriented spending over expensive and time-intensive projects. With the increasing costs of dining out and socialising, there is a notable shift towards people preferring entertainment in the comfort of their own home. A recent Mintel Consumer Trends report found that 49% of respondents aim to enhance their living spaces, anticipating reduced outings in the coming year.
This shift is also reflected in the property market where energy-efficient features are becoming more and more prominent. Economical heating systems, such as smart meters, and great insulation now rank high on the list of prospective homebuyers' priorities, aligning with cost-consciousness and sustainability. Estate and letting agents should therefore consider catering to the demand for value-focused and energy-efficient living spaces, as should sellers and landlords looking to attract buyers and tenants.
Sustainable Luxury at Budget-Friendly Prices
The concept of "micro-luxury" is also gaining traction, allowing consumers to add opulence to their living spaces without straining their budgets. This trend is exemplified by the integration of technology into homes, such as smart speakers and automated appliances. Despite rising living costs, tech companies are finding a receptive market as customer need for modern living does not waver. The UK currently boasts 15 million smart homes, with 54% of respondents preferring a home equipped with smart technology, and 65% willing to pay extra for the convenience and long-term efficiency it offers.
The desire for sustainable luxury, affordability, and technological innovation is reshaping the home market, and will continue to do so into 2024 and beyond. Agents that embrace these trends are well-positioned for future success.
DIY Home Projects Are Thriving
Despite economic challenges, the do-it-yourself, or DIY, spirit remains strong, with 58% of consumers having completed a DIY project in the past year. This surge in DIY home projects presents opportunities for brands to offer valuable advice and resources. One in five homes in the UK have unfinished DIY projects, highlighting the enthusiasm for home improvement in British homeownership culture.
How did DIY get so popular again? First, the necessity brought by the pandemic and lockout forced homeowners to put in some elbow grease. But social media platforms, especially TikTok, have also played a pivotal role in re-popularising this trend. The easy-to-consumer ‘advice’ content provides vast audiences with instant access to DIY tutorials and influencers who offer inspiration and guidance. A significant 26% of individuals credit social media as a key influencer in their recent DIY endeavours.
Estate agents can leverage this trend by engaging with increasingly savvy and selective consumers. Understanding customer needs and providing tailored advice can foster a relationship with homeowners built on trust and loyalty, potentially strengthening their position when such customers decide to buy or sell their property.
In conclusion, the property market is evolving rapidly in response to changing consumer behaviours, the demand for sustainable luxury, and the popularity of DIY home projects. Agents that adapt to these trends by offering value-focused, tech-infused solutions and personalised guidance are poised for success in the ever-changing landscape of home living in the remainder of 2023 and into 2024.
Click here to view The Home Report Summer 2023 in full.