More than four in 10 affluent Americans (41%) — defined as those who have a minimum net worth of $800,000 — are making a conscious effort to spend less in the coming year than they did in the prior year, according to the American Affluence Research Center. The primary reason they are choosing to cut back (or to continue cutting back) is because they are uncertain about when the economy will recover. Two thirds (65%) report wanting to save more so they plan to spend less, and 60% say they have experienced a decline in savings or investments.
One in 12 affluent households (8%) will remodel their kitchen in the coming two years, and 16% are considering a kitchen remodel but are unsure. Those who are definitely planning a remodel expect to spend an average of $35,000, and those who are on the fence assume they would spend an average of $28,000. They would hire a kitchen design specialist to help them source most purchases, and they cite Home Depot more often than Lowe’s as a store they would shop.
More than one in 10 (11%) plan to remodel a bathroom in the coming two years, and 19% are considering a bathroom remodel. Those who are definitely planning a remodel expect to spend an average of $15,000, and those who are unsure if they will remodel assume they would spend an average of $11,000. Those planning a bathroom remodel also most commonly say they would hire a design specialists, followed by shopping Home Depot and then Lowe’s for items needed for their remodel.
About 12% say they will not buy Christmas or Hanukah presents in 2010, up from 9% in 2009 and compared to 3% who said so prior to the recession. Among those who plan to buy gifts, 3% expect to spend more and 29% expect to spend less. In 2009, their average spending was $2,399, and their median spending was $1,160.
Source: “Fall 2010 Affluent Market Tracking Study,” American Affluence Research Center, Ron Kurtz, PO Box 978, Alpharetta, GA 30004; 770-740-2200; kurtzgroup@comcast.net; www.affluenceresearch.org. Price: $395 for the basic report; $595 for full cross-tabulated data.
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