NEW YORK – Americans plan to invest more money to fix up their homes through landscaping and other projects this year, according to the fifth annual American Express Retail Index on home improvement. The 2000 survey found that household budgets for home improvement projects outpaced the nation’s economy, rising to an average of $2,888, a 5 percent gain over 1999.
Among the top planned home improvement or decorating projects are landscaping, with 34 percent of respondents planning this project, and gardening (29 percent). Other home improvement projects included in the survey are interior decorating, cited by 43 percent of respondents, renovation/remodeling (35 percent) and mandatory maintenance (26 percent). Among these categories, landscaping and gardening projects showed the largest increases of 11 percent and 10 percent, respectively, over the 1999 index results.
A closer look at the past five years of data from the retail index, which is compiled from a national, random survey of more than 900 consumers, shows an up/down trend in landscaping and gardening. The percent of respondents planning these projects is high one year, down the next, then back up the next year. This year is an up year as the index for 2000 is the highest in the survey’s five-year history. The following list shows the percentages of people performing landscaping and gardening projects over the past five years:
- 2000 – Landscaping: 34 percent; Gardening: 29 percent
- 1999 – Landscaping: 23 percent; Gardening: 19 percent
- 1998 – Landscaping: 29 percent; Gardening: 27 percent
- 1997 – Landscaping: 19 percent; Gardening: 16 percent
- 1996 – Landscaping: 23 percent; Gardening: 25 percent
While the number of Americans planning home improvement projects remained steady at 39 percent, the survey found that more Americans are undertaking multiple projects, as well as those which require bigger budgets, such as landscaping and kitchen and bathroom remodeling. In addition, the survey revealed that spending on the home is a common expense for most consumers.
"In many parts of the country, the tight housing market makes it difficult for consumers to purchase a new home. Therefore, home improvement takes on an even greater priority," said Valerie Soranno, vice president and general manager, American Express. "And, as the economic boom moves into its ninth consecutive year, updating and improving their homes has become a part of consumers’ everyday lives."
"Change in personal taste" was the main reason for tackling larger home improvement projects for 50 percent of respondents. Other reasons given include: mandatory maintenance (32 percent), a desire to increase their home’s resale value (9 percent) and the need for more space (7 percent).
Additionally, the survey found that 72 percent of consumers said they planned to handle home improvement projects on their own, up from 67 percent in 1999. [NOTE: This statistic includes all of the home improvement projects listed.] To find the needed materials, 65 percent said they would shop at home improvement stores, including Lowe’s and Home Depot. Other shopping destinations include: hardware stores (19 percent), department stores (16 percent), gardening stores/nurseries (13 percent), lumber yards (11 percent), home decorating stores (10 percent), specialty shops (9 percent) and home furnishings stores (8 percent).
Survey results show that 79 percent of Americans plan to pay for their home improvement projects with cash, up from 69 percent in 1999. Other popular ways to finance home projects include tax refunds (15 percent), credit/charge cards (13 percent), home improvement loans (9 percent), a company bonus (6 percent), mortgage re-financing (2 percent) and family loans (2 percent). With the exception of cash, all other payment categories remained level with 1999.