by 14% of those surveyed making $150,000 per year or more own a second home compared with 25% of those earning more than $250,000
HIGH POINT — For high-income consumers, one of the top places to invest is in a second or vacation home. Obviously, this is a good thing for furniture sales given that these properties also need to be furnished, particularly as they are prime places to show off to and entertain family and friends.
In our fifth and final Consumer Insights Now research, sponsored by Bread Financial, we delved into the second-home market and how people furnish those homes.
To understand the significance of the market, our survey indicates that some 14% of high-income households own a second home, compared with nearly one-quarter of those earning more than $250,000. Thus we can assume that the percentages increase for those in even higher income brackets of $350,000, $500,000 and higher.
Nearly all second-home owners are 38 years or older, with 34% of baby boomers, 31% of Gen Xers and 30% of older millennials claiming to own a second home, compared with just 7% of younger millennials and Gen Z consumers.
Also worth noting is that while quality of the furniture purchased may not be as high as their primary residence, nearly a quarter of high-income consumers are redesigning their second homes every two to four years compared with 71% who redesign every five years or more.
This compares with 36% who say they redesign or redecorate their primary home every two to four years and 58% who do so every five years.
Nineteen percent of those surveyed said they buy furniture or mattresses for a second home every two to four years compared with 33% for a primary home. This compares with 73% who said every five years for a second home and 63% for a primary home.
Also, about three-quarters of those surveyed said they have a consistent style throughout with neutrals and blues dominating living spaces and neutrals and whites being the main colors of bedrooms.
In order, the Top 10 categories sought include outdoor furniture, office furniture, guest bedroom furniture, occasional tables and sofas and sectionals, again emphasizing the importance of entertaining and hosting family and friends. Rounding out the Top 10 are primary bedroom furniture, lamps, lighting fixtures, mattresses for the guest bedroom and area rugs.
The survey also shares insights about the types of preferred color themes for dining and living spaces, as well as for primary and/or guest bedrooms. Neutrals, blues and whites are among the most popular for each of these areas followed by green and brown tones. Much of this largely depends on whether the second home is near the coast or in the mountains, allowing the consumer to have their home reflect the natural environment.
Obviously there are retailers that have long served markets with second homes, particularly along the tens of thousands of miles of coastal areas near the beach or the lake. This has long fueled demand for products in licensed collections such as Tommy Bahama, Coastal Living, Panama Jack, Field & Stream and now Margaritaville, not to mention case goods and upholstery in non-licensed collections that serve various second-home markets.
Regardless of whether high-income earners have yet to acquire their second dream home, the message is clear: These consumers have a keen interest in furnishing their homes and likely already have an idea of how they wish to do so. The question is: Are you ready to serve this growing market? Because whether your store is ready or not, these consumers are definitely ready to buy from you or a competitor. As always, we hope this data proves useful to your business in serving the needs of this important market.
Below is our publishing schedule for this season’s edition of Consumer Insights Now. To view each report in full, click the links.
+ March 23 – High-Income Shoppers Overview
+ March 30 – Designers
+ April 6 – Furniture Stores
+ April 13 – Home Design
+ April 20 – Second Homes
