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Baby Boomers' Behavior Pushing the Building Supply Industry

Posted by Brandon Weaver | Wed, Mar 13, 2013 @ 09:10 AM

Home improvement projects can significantly help raise the value of existing homes and help consumers make a substantial profit. Whether it's adding a bedroom, remodeling the kitchen or repairing the roof, these improvements all help increase the home's value. It also reduces the amount of work a home buyer needs to perform once they purchase the home - good news for baby boomers.

rising home pricesBloomberg News reports the "median price of an existing home rose to $173,600, up 12.3 percent from January 2012." As more homeowners view this trend, they will be more likely to do home improvements, whether they hire contractors or choose to do the work themselves. This may bode well for baby boomers and seniors entering the retirement stage of their life if they choose to sell and relocate. This could be the aftermath of the holiday season and the new year beginning. Nonetheless it is a good sign for the building supply industry.

If you are marketing to baby boomers, here are some interesting statistics on their buying power and purchasing habits:

  • Baby boomers make up 35% of the American adult population
  • The 55+ age group controls more than three-fourths of America's wealth
  • Baby boomers account for 40% of total consumer demand
  • Baby boomers outspend other generations by an estimated $400 billion each year on consumer goods and services
  • 96% of baby boomers participate in word-of-mouth or viral marketing

This generation might be getting more active on social media, but they still appreciate traditional customer-to-customer feedback when purchasing goods and services. Talking to friends and family, reading reviews on Yelp and Consumer Reports top the list of their activity. Having an established, positive reputation on these sites is sure to help your business moving forward. Think about it: don't you trust positive reviews from friends, family and business associates more than the unknown?

In addition, baby boomers have another incentive to do business with you: a growing family. It's simple math; baby boomers and seniors have more extended families than younger generations - they have more grandchildren. They want to make their homes safer and more accommodating. For example, "widening hallways with enhanced lighting - to accommodate children's toys and strollers." Or how about painting the newly-finished bedroom with their favorite color?

The new year is still young. Take advantage of rising home prices to generate business for customers looking to do home repairs. Not only will they be looking to remodel inside the home, but outside projects too. Spring time is right around the corner and people will be encouraged to work outside knowing the weather will not be a factor. This means redoing the brick path, building a deck awning or tree house, or installing a sandbox for when their grandchildren visit.

How is your business planning to capitalize on this trend? Act now before your competitors do!

building materials, green, eco-friendly

Topics: Building Materials

Written by Brandon Weaver