The critical junctures for home industry growth

New research from the NPD Group has confirmed that Millennials and Boomers entering new stages of their lives are the biggest drivers behind housing industry growth.

Specifically, purchase decisions are more lifestyle-oriented than innovation-focused in areas of home categories that experience the most growth.

“The two largest generations are entering new life stages, and the focus they both have on the basics of their new lifestyles is having a tangible effect on the home industry,” said Lora Morsovillo, president of NPD’s home division. “The Millennials are starting homes of their own and Boomers are creating a new type of home for themselves as they become empty-nesters and enter retirement.”

According to the research, consumers between the ages of 25 and 34 were responsible for 61% of small appliance dollar sales gains in 2015.

Those aged 55 and up accounted for 61% of the dollar gains in non-electric housewares categories last year, and 66% of the home textiles growth.

Sales of small appliances, non-electric housewares, and home textiles each grew 2% year-over-year in 2015, reaching a combined total of $50.9 billion. The most dollar growth could be traced to fundamental needs, rather than the aspirational trend of recent years.

"When it comes to the essentials, personal health and wellness are high on the list and they apply to each of the home categories that drove the most growth in 2015, from cooking and cleaning to sleeping and hydrating on-the-go,” added Morsovillo. “Millennials, as a group, have a higher level of awareness into their personal well-being than recent generations, and Boomers are becoming more mindful as they age. At this moment, in order to appeal to these key consumer segments marketers of home-related products need to keep the basics in mind.”