The Home Improvement Research Institute is the nation’s top resource for market research concerning the home improvement products industry. Their annual summit is a can’t-miss event for marketers and researchers who want to stay ahead of the changes impacting the market.

I had the pleasure of attending the 2024 HIRI Summit, which fea­tured speak­ers with deep knowl­edge in a diverse range of sub­jects related to the ever-evolv­ing world of home improvement.

Here are five key topics from this year’s event that marketers in the home and building sector should consider as they work to better understand their customers’ mindsets and needs heading into 2025.

1. Housing market dynamics

Not surprisingly, current housing inventory in the U.S. and its influence on new construction was a consistent topic of discussion at this year’s summit. With a lack of resale homes, approximately one-third of single-family homes for sale are new. This scarcity of existing housing stock fosters demand for new builds, particularly as single-family home construction is expected to lead the housing market recovery. However, challenges persist, including supply-side issues such as lot shortages and material constraints.

2. Consumer confidence and spending

Consumer confidence remains shaky, influenced by economic concerns and geopolitical uncertainties.

According to recent findings, only 17% of consumers feel that now is a good time to buy a home, a sentiment driven largely by rising home prices and high interest rates. As homeowners grapple with financial pressures, they remain hesitant about larger purchases, which also include remodeling projects.

Interestingly, since 57.3% of homeowners now have a mortgage interest rate under 4%, this contributes to decreased mobility, impacting overall market fluidity. However, nearly 40% of homeowners are mortgage-free, creating a more mobile segment less affected by rising rates.

3. Contractor perspectives

During the summit, a contractor panel highlighted that while financial factors remain a top concern, there is optimism for growth. They foresee consistent project work, even in the face of high costs. Top opportunities cited by contractors for business growth include energy efficiency and smart home technology integration.

Understanding the priorities and challenges of contractors, such as budget pressures and material availability, will be crucial for brands that target them. Promotions and discounts emerged as effective strategies for capturing contractor attention. However, it’s essential that these efforts not compromise quality. Instead, brands should focus on delivering strong value propositions.

4. The role of energy efficiency

As homeowners become more environmentally conscious, the demand for energy-efficient solutions is rising. However, challenges such as high upfront costs and limited awareness hinder adoption. Collaborating with suppliers and educating consumers about these solutions will be vital for unlocking potential in the energy-efficient market.

5. Brand loyalty trends

The summit also shed light on brand loyalty trends. It was encouraging to hear that loyalty has rebounded to pre-pandemic levels. Interestingly, I learned that over two-thirds of professionals are willing to try new brands if they are promoted with discounts, while only 20% exhibit extreme concerns about exploring unfamiliar options. This presents a significant opportunity for marketing teams to leverage this openness and clearly communicate the value of their offerings.

What these home improvement trends mean for marketers

Looking forward, it’s clear that strategic positioning is paramount. Brands must proactively address the evolving needs of contractors and homeowners, which include:

• Emphasizing value: Shift the focus to providing comprehensive value, ensuring quality and service that meet or exceed customer expectations.

• Strengthening relationships: Build partnerships with pro contractors to foster loyalty and encourage word-of-mouth referrals.

• Innovating promotions: Explore creative promotional strategies that resonate with consumers’ financial realities while showcasing product value.

Overall, the 2024 HIRI Summit provided invaluable insights into the current state of the home and building products market. By understanding the challenges and opportunities that exist today, brands can better navigate the complexities of the industry, leading to sustained growth and stronger customer loyalty.

Want to dive deeper into marketing strategies for the home and building industry? Check out our blog on connecting with boomer homebuyers — who account for nearly one-third of all homebuyers in 2024 — to learn more.